Shinsegae sees success with 'megashop' strategy in regional stores

▲ This photo of the Lacoste megashop in the Gimhae branch of Shinsegae Department Store is provided by the department store. (PHOTO NOT FOR SALE)(Yonhap)

SEOUL, April 14 (Yonhap) -- Shinsegae Department Store said Monday its “megashop” strategy, introduced to strengthen smaller regional outlets, is delivering solid results.

The company said sales at 23 megashops opened over the past two years rose by an average of 70 percent on a same-space basis.

The megashop strategy focuses on expanding high-performing brands rather than increasing the number of tenants. By offering full product lineups alongside experiential content, each store is designed to enable diverse purchases in a single space.

Shinsegae said the approach has been particularly effective for smaller stores, which face structural limitations in attracting luxury brands. Large-format fashion and sports shops have helped boost foot traffic and drive related purchases, improving overall store performance.

At its Gimhae branch, a Lacoste megashop recorded a 1.5-fold increase in sales within a month of opening in March, with average spending per customer rising nearly 40 percent.

At the Centum City branch in Busan, a Skechers megashop opened earlier this month achieved the equivalent of a full month’s sales at a conventional store within just one week. The store features a comprehensive lineup covering running, golf, pickleball and kids’ products.

A Shinsegae official said building “scale advantages” through megashops is key for smaller outlets, adding the company will continue to expand the concept tailored to regional market characteristics.

jwc@yna.co.kr

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