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As one of South Korea‘s leading department stores in the upper segment, Hyundai’s ambition is to “bring happiness to customers and enrich the world”. Seoul is known for its shopping culture as many people frequent department stores. Today, with the e-commerce spike caused by the pandemic, Hyundai is questioning the purpose of physical retail and answering the call for drastic changes in the industry.

Occupying no less than 89,000 sqm across a total of 12 floors (including 4 levels of underground parking) gathering nearly 600 different shops, The Hyundai Seoul first of all offers great architecture. The skyscraper complex where it is located was imagined by Sir Richard Rogers. Various international architects and designers took part of the department store project such as Cmk Architects for the cosmetics and beauty area, and Diego Burdi and Paul Filek for women’s and men’s fashion areas. Landscape designers Woo Kyung- Mi Woo Hyun-mi Design took care of the vegetal parts of the mall.

Besides offering city dwellers a place where they can shop, experience cafes, restaurants and art, The Hyundai Seoul claims it is Korea’s first eco-friendly department store, bringing together the concepts of nature and rest with shopping.

Opened in March 2021, the Hyundai Seoul also illustrates the end of a siloed business model which used to separate shopping, entertainment and communication. On the contrary, inspired by young generations and highly in line with social media posting, the department store merges the three businesses into one. IADS partner Nelly Rodi had the occasion to visit the Hyundai: check out what the new department store really has to offer and look at the collection of pictures provided.

Entertainment features from nature to GenZ content, culinary experiences and art

The Hyundai Seoul’s most striking feature can be found in how the surface is allocated as almost half of its space is dedicated to indoor landscaping. The department store wants to provide a space where customers can relax, rest, reconnect with nature and experience its healing benefits. To that end, a 12-meter-high waterfall called the 'Waterfall Garden' is visible from floor 3F to floor 1F (ground floor), and a 3,300 sqm garden located on the 5F floor comes with 30 trees, natural grass and nature sounds. It is the largest indoor garden in Korea with natural lights shedding through a 20-meter-high glass ceiling. The walkways in the shopping mall are also wider than usual, so customers don’t constantly bump into each other, which seems especially important since the department store opened during the pandemic.

llustrating a common retail trend, the department store clearly ambitions to capture the local GenZ by offering them entertaining and Instagramable spaces such as a pool full of pink balls, new brands and pop-up stores, all gathered within the B2 floor. Dubbed ‘Creative Ground’, the floor also includes metaverse and NFTs. But there’s more to attract the younger generations. Located on the 6F floor, CH 1985 (referring to Cultural House initials and to 1985 as the first year Hyundai mixed culture with retail) is the first boutique and cultural space intended for Millennials and GenZ. Defining itself as a social club, talks and masterclasses are organized such as the Late Night Salon centred around Korean culture and the bustling Seoul artistic creativity.

The food offering is probably the biggest of its kind in the country. Called ‘Tasty Seoul’ and located on B1 level, the 14,800 sqm food and restaurant area features no less than 90 different food and beverage venues ranging from a food market to food stands. As Seoul emerged as a culinary destination, Michelin-star chefs also offer upscale experiences. Wine and spirits are also developed, mostly to attract male customers and help entertain them while their wives are shopping: they can enjoy famous local sommelier advisory and taste wines while smoking cigars and reading books about Cognac or winemaking. On the 6F floor, groups of 6 people can benefit from famous chefs’ cooking masterclasses and then enjoy their meals in private dining rooms.

Illustrating the culture trend one can see growing in the retail industry, The Hyundai Seoul has a museum located on the 6F floor. Called Alt.1, it is set to offer various art exhibitions able to draw in many customers. Art exhibition examples include fashion photography with works from Paolo Roversi, Peter Lindbergh, Nick Knight and Ellen von Unwerth. The entry price is EUR 13, or at a reduced fee of EUR 10 to encourage younger generations to visit the museum.

Tech used to build a seamless and pandemic-ready department store

Located on the 6F floor, the ‘Uncommon Store’ gives a vision of what supermarkets and convenience stores could look like in the future. Before entering, shoppers are required to install an app by scanning a QR code. After registration, payments will be automatically and seamlessly registered and processed. The ‘Uncommon Store’ uses a cloud system and internet hyper connections, AI, complex sensors, and machine learning techniques, all being taken care of by Amazon Web Services which are fully integrated into the store’s retro-futuristic design. The Internet of Things also forms a two-way communication between the space and its users, allowing storage and reloading of the shopper’s purchases and consumption habits.

The Hyundai Seoul is infused with additional tech innovations, such as facial recognition to enter VIP areas, the deployment of a guide robot, a safety robot, and a special app to make restaurant reservations and check parking spaces. Given the pandemic, tech has also been applied to maintain safe shopping. Multi-recognition temperature scanners which are used in airports have been installed at all entrances while portable thermal imaging cameras and facial recognition heat scanners were installed at indoor entrances. Also, air sterilisers can be found at major customer facilities to enhance air circulation, and all door handles have been covered by a layer of 99.9% pure copper which has excellent sterilisation and anti-viral effects.

Customer-centricity and services are significantly developed

Overall, the department store offers a high level of customer service. Concierge services provide information on brands, events, as well as helping customers with restaurant and CH 1985 lecture room bookings. Dry cleaning, alterations, watch, bag and shoe repair services are also available and distributed across the floors dedicated to the fashion offer. Lockers are displayed on the B1 floor for customers to leave their heavy belongings and shop hands-free. As the 5F floor is dedicated to kids, it offers various kids-related services such as baby and kid lounges and stroller renting. Finally, a full lounge, ‘The Club Wedding’, on the 6F floor offers wedding services.

Finally, The Hyundai Seoul purposes 2 membership programs. The ‘classic’ one has 3 levels depending on their annual spending and also offers access to a private coffee shop. The second membership program is designed for Millennials and GenZ based on their level of influence.

What about the brand and product offer?

The department store offers a classic layout when it comes to cosmetics, beauty and luxury categories. Beauty brands and luxury brand concessions, including jewellery and a large watch offer, are gathered on the 1F floor (ground floor) under the ‘Exclusive Label’ area.

The 2F (‘Modern Mood’) and the 3F (‘About Fashion’) floors are dedicated to men’s and women’s fashion. They mix brand concessions and multi-brand areas (including a large Tom Greyhound shop, the Hyundai-owned affordable luxury multi-brand store), and overall try a more genderless approach to fashion in certain areas. The 3F floor also offers a multi-brand shoe section.

The 4F floor is the place to find sports and home products. The 5F floor is home to a comprehensive kids product offer and to tech brands. A Lego store is also coming along with brands such as Microsoft, Samsung and Dyson to name a few.

As it is also the case at their Seongnam branch, an affluent and fast-growing satellite town of Seoul, The Hyundai Seoul is clearly chasing after the younger generation’s wallets. But is that all there is? More broadly, and considering its size, the department store is also able to address all kinds of consumers from families with toddlers, to fashionable women and wealthy male consumers, each time developing the appropriate product, experience and service offer for each consumer group.

Overall, the Hyundai Department Store Group has evolved to provide comprehensive shopping experiences with a renewed lifestyle and cultural approach to retail. Without forgetting people’s cravings for nature, The Hyundai Seoul is a fair example of what the store of the future could be.

Credits: IADS (Christine Montard)