Shinsegae Department Store to rebrand off-price chain Factory Store

Shinsegae Department Store announced Thursday it will rebrand its off-price chain Shinsegae Factory Store.

The overhaul is the first since the business launched. The chain will move beyond its clothing-focused format and reposition itself around the concept of "discovering good value," with a new brand identity and design intended to convey a younger, more dynamic image.

The Gangnam store will expand from 330 pyeong (1 pyeong equals 3.3 square meters) to 420 pyeong and will be the first to carry the new brand identity. The revamped location will introduce a beauty-focused zone called "Beauty Treasure Box" and a travel goods section called "Travel Specialty Zone," along with a dedicated space for sports and SPA brand footwear to broaden shoppers' choices.

The changes reflect a strategy to extend customer dwell time and raise average spending per visit. Shinsegae also plans to increase the share of directly purchased products, which carry higher margins, to strengthen profitability. The Gangnam store will serve as the blueprint for future new openings and renovations of existing locations.

Shinsegae plans to roll out the new brand identity to all Factory Store locations sequentially, starting with Gangnam, and will renovate key stores in stages. In the second half of this year, the company will open new stores focused on major commercial districts including Uijeongbu, Gimhae and Wolgye. It is also reviewing a smaller-format store model tailored to local retail conditions.

Over the medium to long term, Shinsegae aims to expand the business overseas. The company plans to connect excess inventory from domestic small and mid-sized fashion brands with foreign markets, opening new sales channels abroad. It intends to build the off-price business into a new growth pillar by drawing on the product-planning expertise and operational know-how accumulated through its department store operations.

Shinsegae Factory Store opened its first location in 2017 and surpassed 100 billion won ($64.6 million) in annual sales in 2024. This year, the company is targeting 23 stores nationwide and annual sales of 130 billion won.

"This rebranding is the starting point for developing Factory Store into a new growth business for Shinsegae," said Park Sang-eon, executive director of new retail at Shinsegae Department Store. "We plan to lead the domestic off-price market on the strength of differentiated product competitiveness and department store operational expertise, and to expand into overseas markets over the long term."