Korean Department Stores Become Luxury Shopping Hubs as Won Weakens
Creatrip Team
2 months ago
Foreign tourist spending at major Korean department stores has surged as the weak won makes luxury goods cheaper for visitors. Last year foreign sales at Shinsegae flagship rose 82% and 67% in the luxury category, Lotte and Hyundai also saw large increases. The depreciation of the won against the dollar, euro and pound has made high-end items more attractive, prompting some foreigners to visit Korea primarily to buy luxury goods and then sightsee. Department stores are responding with targeted promotions and services for overseas shoppers (e.g., foreigner-only memberships, airport transfer tour packages). The shift of foreign spending from duty-free to department stores and roadshops (e.g., Olive Young, Daiso) is boosting results, and industry indexes suggest department stores may continue to outperform other retail channels while the exchange-rate advantage persists.
