Fashion Group Hyungji says 'in-shop, focus' strategy pays off with stronger store sales

Fashion Group Hyungji said Wednesday that its agency store sales rose in the first half of the year after the company redesigned its new store opening strategy.

The results reflect a shift away from the traditional multi-store approach concentrated in urban centers, toward "in-shop" formats inside hypermarkets and other convenience-oriented facilities, as well as "focus stores" tailored to local market characteristics. Average sales at newly opened agency stores this year rose by double digits compared with existing stores. New outlets in particular have been posting high daily average sales immediately after opening.

The five stores that opened in the first half of the year averaged about 2 million won ($1,310) in daily sales. One store recorded 6.3 million won in sales on its opening day. The Crocodile Lady Ansan Bugok store, which opened in late March, logged a daily average of 2.5 million won — 142 percent above the average for the roughly 340 Crocodile Lady stores nationwide. A targeting strategy that placed the "park golf" line front and center, taking into account the foot traffic patterns of nearby senior customers, proved effective.

New in-shop agency stores that entered large retail channels — including E-mart locations in Jeju, Gangneung and Pohang — also drew in foot traffic, capturing younger shoppers who prefer one-stop shopping. In response, Fashion Group Hyungji plans to expand its customer base to younger demographics by introducing more sophisticated designs and upgraded materials across its key brands, including Olivia Hassler, Viva and Flow.

A Fashion Group Hyungji official said the company's efforts to restructure its retail model away from the traditional street-store paradigm were beginning to show results. "We will continue to improve store efficiency by closely monitoring changes in commercial district conditions and consumer trends," the official added.