After slow start, department stores showing signs of life as holidays approach

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After slow start, department stores showing signs of life as holidays approach

Published: 07 Nov. 2025, 17:49 Updated: 09 Nov. 2025, 17:21

Audio report: written by reporters, read by AI

A view of the holiday event section at Shinsegae Department Store in September. [YONHAP]

Korea’s three major department store chains — Lotte, Shinsegae and Hyundai — have all reported their third-quarter earnings, showing signs of recovery after a sluggish first half.

Lotte Shopping and Shinsegae disclosed their third-quarter results on Friday. Lotte Shopping reported 3.41 trillion won ($2.34 billion) in consolidated revenue, down 4.4 percent from the same period in 2024, and operating profit of 130.5 billion won, a 15.8 percent decrease. The company also swung to a net loss of 48.7 billion won.

Despite the overall decline, Lotte’s department store division performed well. Lotte Department Store recorded 734.3 billion won in revenue, up 0.7 percent year-on-year, and 79.6 billion won in operating profit, a 9 percent increase. The division has posted year-on-year profit growth for three consecutive quarters.

Shinsegae posted consolidated revenue of 2.81 trillion won in the third quarter, a 3.9 percent increase from the previous year. Overall operating profit rose 7.3 percent to 99.8 billion won. The department store division saw revenue edge up 0.5 percent to 622.7 billion won, but operating profit fell 4.9 percent to 84 billion won. These figures exclude the performance of Shinsegae Simon’s premium outlets.

A Shinsegae spokesperson attributed the dip in profit to “strategic investments aimed at future growth,” such as the renovation of the food hall at its Gangnam branch, which was completed in August, and updates to fashion sections at the main and Centum City branches.

A Christmas tree light display is installed on the exterior wall of Lotte Department Store’s Young Plaza in central Seoul on Oct. 29. [YONHAP]

Industry insiders say a key driver of the third-quarter rebound was a rise in foreign tourist traffic. Lotte Department Store noted strong sales at flagship locations such as the Myeong-dong main branch and Jamsil branch, both of which are popular with foreign shoppers.

“At our main branch in central Seoul, foreign customer sales rose 39 percent year-on-year in the third quarter, with international visitors accounting for 19 percent of all foot traffic,” a Lotte Department Store official said. “The Jamsil branch also posted a 13 percent jump in sales from foreign shoppers.”

Hyundai Department Store, which had reported its earnings previously, also cited a boost from international tourists, driven by the fever for Korean content and China’s visa-free policy for Korean visits. Hyundai’s department store division posted 89.3 billion won in operating profit for the third quarter, up 25.8 percent from a year earlier.

“Harry’s Christmas Workshop” is set up at Sounds Forest on the fifth floor of The Hyundai Seoul in Yeongdeungpo District, western Seoul. [HYUNDAI DEPARTMENT STORE]

With the holiday shopping season approaching, department stores are planning to maximize customer engagement through themed events and tourist-oriented promotions.

“In the fourth quarter, we’ll complete a revamp of The Reserve section at our main store and relaunch SSG Food Market in Cheongdam with a premium grocery selection and trendy content,” said a Shinsegae spokesperson.

“Starting Nov. 20, we’ll launch a Christmas market at Lotte Town in Jamsil, offering a range of experiences to attract foot traffic,” said a Lotte Department Store spokesperson. “With both the peak shopping season and year-end holidays ahead, we’ll focus on maximizing customer turnout.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY NOH YU-RIM [[email protected]]