What: Galleria Department Store accelerates its premium strategy with significant growth in jewelry and watches, achieving 20% annual growth over five years and doubling the category's contribution to total sales from 8% to 15%.

Why it is important: The success of this premium strategy provides a blueprint for department stores seeking to evolve beyond traditional luxury categories, particularly as the Asian luxury market faces changing consumer preferences and increased competition from digital channels.

Galleria Department Store's strategic transformation of its luxury offering demonstrates successful category diversification in the premium retail sector. The company's focus on high-value products like watches and jewelry has yielded consistent 20% annual growth from 2019 to 2024, with these categories now representing 15% of total sales, up from 8% in 2019. This shift is exemplified by the opening of exclusive boutiques for prestigious brands such as H. Moser & Cie, a Swiss luxury watchmaker with nearly 200 years of heritage, and Wellendorff, a German high-jewelry brand operating only 100 stores worldwide. The strategy extends beyond product offerings to include specialized retail environments and enhanced customer experiences, particularly at the Seoul Luxury Hall. The transformation is further supported by regular high-end jewelry and watch exhibitions worth billions of won, while regional stores like Daejeon Time World have also strengthened their premium offerings through partnerships with brands like Graf and an expanded Rolex presence. This comprehensive approach to luxury retail demonstrates how department stores can successfully evolve their premium positioning while maintaining brand exclusivity and customer engagement.

IADS Notes: The luxury department store landscape has shown significant regional variations throughout 2024-2025. In January 2025, Maeil Business Newspaper reported Korean department store growth falling below 1%, prompting strategic shifts toward premium categories. By February 2025, Forbes covered Shinsegae's successful "House of Shinsegae" concept achieving 149.9% sales growth through luxury experiences, while The Korea Herald detailed in April 2025 how major retailers like Lotte and Shinsegae were investing heavily in flagship renovations. This trend paralleled global developments, with WWD reporting in November 2024 how Harrods was creating dedicated spaces for timeless luxury brands. The transformation continued as Fashion Network revealed in July 2025 Galeries Lafayette Haussmann's double-digit growth through strategic brand partnerships. The success of these strategies was particularly evident in May 2025, when Inside Retail reported Lotte achieving 44.3% profit growth through premium category expansion, demonstrating how department stores can successfully balance heritage preservation with luxury innovation.

Korea’s Galleria Department Store is stepping up its high-end strategy