Lotte Department Store's Kinetic Ground draws Gen Z, foreign shoppers in first year

Seven out of 10 customers who visited Kinetic Ground, a K-fashion specialty zone inside Lotte Department Store's main branch, were in their 20s or 30s, the retailer said Monday.

Kinetic Ground opened on the ninth floor of the main branch on July 4 last year. The 1,800-square-meter space houses 15 brand stores — including Matin Kim and Mardi Mercredi — along with a dedicated pop-up store zone.

Over the past year, 20 percent of new customers at the main branch came through Kinetic Ground. In addition, 80 percent of Kinetic Ground visitors also made purchases in other product categories.

Foreign customers accounted for 70 percent of Kinetic Ground's annual sales. Over the past year, the main branch's young fashion category saw overall sales jump 130 percent, while sales to foreign customers jumped 440 percent. Shoppers from China, Japan, Southeast Asia, the Americas and Europe all purchased K-fashion at the zone, with sales to customers from the Americas and Europe rising 230 percent year on year.

Content has been a key driver of the zone's success. Kinetic Ground hosted 93 pop-up stores over the past year, serving as an incubator for K-fashion brands. The store also regularly produces content with influencers from Xiaohongshu, the leading Chinese social media platform.

To mark its first anniversary, Kinetic Ground is running a customer appreciation event through July 12. Shoppers who spend 200,000 won ($129) or more in a single visit receive Lotte gift certificates worth 7.5 percent of their purchase, with the same benefit applying to purchases of 400,000 won or more. Popular brands including Trimming Bird, Standing Oil and Yes I See are also offering discounts of up to 60 percent on select items along with limited-edition gifts with purchase.