▲ This photo provided by Shinsegae Department Store shows the first overseas franchise outlet of its off-price retail brand Shinsegae Factory Store, set up at the Patu Xay branch of Kokkok Mega Mall in Vientiane, the capital of Laos, on Aug. 8, 2026. (PHOTO NOT FOR SALE)(Yonhap)

 

SEOUL, Aug. 12 (Yonhap) -- Shinsegae Department Store's off-price retail brand Shinsegae Factory Store has expanded overseas for the first time.

 

The department store operator said Wednesday that it opened its first overseas franchise outlet on Aug. 8 at the Patu Xay branch of Kokkok Mega Mall in Vientiane, the capital of Laos.

 

The store is the first overseas outlet launched under a franchise agreement with Grandview Property, an affiliate of Lao distribution company Kolao Group.

 

Shinsegae plans to expand its Korean-style off-price retail business overseas based on its product planning and store operation expertise accumulated in South Korea. Off-price stores purchase excess inventory directly from well-known brands and sell the products at steep discounts.

 

The Laos outlet, covering about 400 pyeong (1,322 square meters), is designed as a "department store-style off-price outlet" featuring brands selected directly by Shinsegae.

 

Its offerings include K-fashion brands such as Kirsh, Brown Breath and Covernat, as well as Citybreeze, Boldy, Cleveland Golf and Adidas Golf. K-beauty brands including Beauty of Joseon, Nature Republic and SKIN1004 are also available.

 

The company tailored the product lineup to the local climate, with summer-season products accounting for about 80 percent of the merchandise.

 

The expansion is also expected to create overseas sales channels for unsold inventory from Korean brands, helping reduce inventory burdens while supporting smaller brands' entry into overseas markets.

 

Laos was selected as Shinsegae's first destination for its Southeast Asian expansion because the country attracts about 5 million foreign tourists annually and has growing interest in K-fashion and K-beauty.

 

About 10,000 people visited the store on its opening day, according to Shinsegae Department Store.

 

The company plans to expand its franchise business to major Southeast Asian markets, including Thailand and Vietnam, starting with the Laos outlet.

 

"Shinsegae Factory Store's first outlet in Laos marks a meaningful starting point as we bring a Korean-style off-price business that has proven its competitiveness at home to overseas markets," Park Sang-eon, executive vice president in charge of new retail at Shinsegae Department Store, said. "Starting with Southeast Asia, we will continue expanding the reach of our Korean-style off-price business."

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