What: Shinsegae expands successful 'House of Shinsegae' concept to premium supermarket format following exceptional performance at Gangnam branch.

Why it is important: This strategic move illustrates the evolution of retail segmentation, where successful luxury concepts can transcend traditional format boundaries to create new premium shopping experiences.

Shinsegae's "House of Shinsegae" concept, which debuted at the Gangnam branch last June, has exceeded expectations and is now expanding into new formats. The luxury space, featuring high-end restaurants and curated retail offerings, has driven restaurant sales up 149.9% year-over-year, with average purchase values increasing 278%. Building on this success, Shinsegae plans to transform its SSG Food Market Cheongdam branch into "House of Shinsegae Market," combining premium food retail with luxury offerings. The expansion includes the recent trademark registration of "House of Shinsegae Lounge," suggesting further development of VIP facilities. This initiative aligns with CEO Park Joo-hyung's vision to establish House of Shinsegae as a luxury brand, complementing the company's transformation of its Myeong-dong headquarters into distinct luxury zones.

IADS Notes: The success of "House of Shinsegae" reflects a broader transformation in Asian retail. The concept's June 2024 launch as a luxury hotel-style venue preceded November 2024's strategic separation of department store and E-mart operations, demonstrating Shinsegae's commitment to premium positioning. This strategy aligns with January 2025's broader rebranding initiative, building on the momentum of the Gangnam branch's record-breaking 3 trillion won performance in January 2024. The approach mirrors August 2024's analysis of Asian department store transformations, where retailers are creating experiential destinations to attract affluent consumers.

“House of Shinsegae” is a hit