Shinsegae flagship store's foreign spending nearly doubles in Q1

Spending by foreign nationals at Shinsegae Department Store's flagship store in central Seoul nearly doubled in the first quarter following a major renovation project.

Shinsegae said on Thursday that an analysis of Hana Card payments showed that spending by foreign cardholders at its main store rose 98 percent on year in the January to March period.

Internal data also showed that the share of total sales generated by foreign customers nearly tripled in the first quarter compared to the same period in 2019.

Additionally, sales in the luxury goods category at the flagship store increased by nearly 90 percent in the first quarter from a year earlier. The company attributed part of this performance to a large-scale renovation project that was recently completed. The renovation expanded the number of luxury brands at the store, opening boutiques operated by brands such as Hermès, Louis Vuitton, Chanel and Cartier.

To accommodate overseas visitors, the store had added more self-service kiosks at its tax refund desk and introduced an AI-based multilingual interpretation service.

But Shinsegae mainly pointed to nonshopping attractions as a factor behind the increase in foreign visitor foot traffic. Shinsegae Square, located in front of the store, hosts cultural content, including K-pop-related displays and seasonal events, throughout the year.

The company also runs promotional programs targeting foreign tourists. Through Monday, the retailer is holding the "Shinsegae City Tour Shopping Festa," a tourism-themed shopping campaign at stores in Seoul and Busan that offers cultural events, exhibitions and discounts through partnerships with payment and tax-refund companies.

BY KIM MIN-YOUNG [[email protected]]