Lotte Department Store becomes first in industry to surpass W1tr in foreign customer sales

Lotte Department Store announced Tuesday that its sales to foreign customers have surpassed 1 trillion won ($736 million), a record high and the first time any department store in South Korea has crossed that threshold. The milestone comes as the number of foreign tourists visiting the country has continued to rise.

The chain had already broken its previous annual record of 734.8 billion won in foreign sales — set last year — by July this year. The main driver of the 1 trillion won figure is Lotte Town Myeong-dong, which encompasses the flagship store, where foreign customer sales alone reached approximately 520 billion won.

Lotte Town Jamsil has also established itself as a major tourism destination. Foreign customer sales at the Jamsil complex doubled compared with the same period last year. Customers from the Americas and Europe now account for 35 percent of total foreign sales, up 15 percentage points from 2019.

Foreign sales are growing outside Greater Seoul as well. At Lotte Department Store locations outside the metropolitan area, foreign sales rose more than 2.5 times compared with last year. Stores in Busan saw foreign sales jump 150 percent year on year, while branches in the Honam region — including Jeonju and Gwangju — recorded growth of 100 percent.

Foreign shoppers are concentrating their spending on luxury goods and K-culture products. Foreign sales of luxury items more than doubled compared with last year, and K-fashion sales to foreign customers also grew twofold. To meet rising demand, Lotte introduced more than 100 emerging K-fashion brands this year, the highest number in its history.

On top of that, foreign customer sales across all food halls and restaurant floors rose 50 percent year on year.

Lotte Department Store plans to broaden its global customer base further. It will expand the sign-up process for its Lotte Tourist Membership card — a membership program for foreign visitors — to include online pre-registration. The membership, launched at the end of last year, has accumulated 250,000 members to date.

Shopping benefits for foreign customers will be extended to major stores nationwide. As the department store chain with the most locations in South Korea, Lotte will bring perks previously limited to Seoul and Busan to key regional stores including those in Daegu, Daejeon, Jeonju and Pohang. The Daegu store will debut a rewards program and a Lotte gift voucher giveaway targeting tourists arriving through local airports.

Lotte is also rolling out tailored promotions for China's National Day holiday. Through the Chinese super-app Dianping, the company will offer 5,000-won food and beverage discount coupons valid at its flagship, Jamsil and Busan flagship stores throughout October. Foreign customers who pay with UnionPay through Oct. 31 will receive gift vouchers worth 10 percent of their purchase amount.

"It is deeply meaningful to have set a new milestone by ushering in the era of 1 trillion won in foreign sales — a first for the department store industry," said Jeong Hyeon-seok, chief executive of Lotte Department Store. "We will continue to stay one step ahead of the needs of our global customers, strengthen differentiated shopping experiences and content, and grow into a global department store that represents South Korea."