Competition Between Korea Retail Giants Heightens
Competition between the traditional big rivals of the retail and distribution industry - Lotte and Shinsegae - is reaching a decisive phase. The battlefield is the Myeongdong area, especially Sogong-dong and Chungmuro in Seoul, where both have their main branches.
Lotte appears to be ahead with the opening of luxury goods hall “Avenuel” next to its main branch on March 18. It is planning an entire “Lotte Town” covering 25,000 pyeong or 82,645 sq. m and including the old and new buildings of Lotte Department Store, Young Plaza, and Avenuel.
Shinsegae is trying to revive its reputation for reliability by opening a new branch and completing renovation of the main branch in August. Shinsegae chairwoman Lee Myung-hee wrote a her first New Year’s message to all staff in the company’s newsletter, encouraging them to give their all in completing the refurbishment of the main branch. A company official said that even though Shinsegae was the first Korean department store in 1930, it lost its lead when Lotte jumped into the industry in 1979. But once the 30-year-old dream to redevelop the main branch is realized, Shinsegae’s reputation will be restored, the official promised.
After much psychological warfare, Lotte and Shinsegae are now concentrating on unique decoration for their shops. Lotte plans to make the whole of Avenuel, tipped as the largest luxury hall in Korea, into a huge art gallery. Lotte spent W25 billion on renovating the main branch since last year.
Interestingly, adding another dimension to the competition, in South Korea, Lotte operates Krispy Kreme, while Shinsegae has the Starbuck master franchise.
Lotte appears to be ahead with the opening of luxury goods hall “Avenuel” next to its main branch on March 18. It is planning an entire “Lotte Town” covering 25,000 pyeong or 82,645 sq. m and including the old and new buildings of Lotte Department Store, Young Plaza, and Avenuel.
Shinsegae is trying to revive its reputation for reliability by opening a new branch and completing renovation of the main branch in August. Shinsegae chairwoman Lee Myung-hee wrote a her first New Year’s message to all staff in the company’s newsletter, encouraging them to give their all in completing the refurbishment of the main branch. A company official said that even though Shinsegae was the first Korean department store in 1930, it lost its lead when Lotte jumped into the industry in 1979. But once the 30-year-old dream to redevelop the main branch is realized, Shinsegae’s reputation will be restored, the official promised.
After much psychological warfare, Lotte and Shinsegae are now concentrating on unique decoration for their shops. Lotte plans to make the whole of Avenuel, tipped as the largest luxury hall in Korea, into a huge art gallery. Lotte spent W25 billion on renovating the main branch since last year.
Interestingly, adding another dimension to the competition, in South Korea, Lotte operates Krispy Kreme, while Shinsegae has the Starbuck master franchise.
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