Seoul's commercial landscape is undergoing a transformation. While the growth of areas once dominated by young consumers, such as Hongdae and Sinchon, has slowed, traditional markets like Cheongnyangni, Jongno 3-ga, and Suyu are rapidly expanding, driven by a significant increase in spending from consumers aged 60 and older. Analysts suggest that the era of youth-driven consumer trends is giving way to a renewed focus on senior consumers and the rediscovery of established commercial districts.
An analysis of data from the Seoul City Commercial Analysis Service on May 18 revealed a notable increase in sales in areas with a high proportion of consumers aged 60 and above. Traditional markets, long-established businesses, and sectors such as healthcare, jewelry, and essential services are experiencing growth based on senior consumer spending.
A prime example is the area around Cheongnyangni Station, where the proportion of consumers aged 60 and older is 34.1%, one of the highest among major commercial districts analyzed. During the same period, sales in the Cheongnyangni area surged by 228%. Historically recognized for its significant middle-aged and elderly consumer base, Cheongnyangni is now emerging as a key commercial hub in northeastern Seoul, bolstered by mixed-use developments and improved transportation networks.
Suyu Traditional Market has also shown impressive growth, with sales increasing by 302% over the past five years. Similarly, the Jongno 3-ga area experienced a 71% increase during the same timeframe. These regions share a commonality in their strong demand for sectors catering to middle-aged and elderly consumers, including jewelry, traditional medicine, and dining options.
In contrast, the growth of areas traditionally favored by younger consumers has stagnated. The Hongdae area saw a mere 16% increase in sales, while Sinchon experienced an 8% decline. Although both areas still attract a significant number of visitors in their 20s and 30s, they are no longer driving explosive growth in consumer spending as they once did.
This shift is attributed to changes in demographics and consumer behavior. Over the past five years, the population of individuals in their 20s in Seoul has decreased from 1.63 million to 1.49 million, a decline of 8.6%. Additionally, the movement of consumer spending from offline to online platforms has contributed to the slowdown in growth for youth-oriented commercial areas.
Conversely, the consumer base aged 60 and older is expanding rapidly. As the baby boomer generation enters retirement, the phenomenon of "active seniors" is becoming more pronounced. This demographic is increasingly engaged in dining out, health management, and leisure activities, demonstrating strong loyalty to the offline markets they have frequented for years.
Particularly in areas like Cheongnyangni, Jongno 3-ga, and Suyu Traditional Market, these long-established districts serve as vital consumer hubs, offering not just retail options but also healthcare, pharmacies, traditional markets, restaurants, and essential services. This aligns well with the senior consumer pattern of wanting to see, buy, and enjoy their purchases while addressing healthcare, food, and dining needs all in one visit.
Moreover, the trend of "retro consumption" among younger consumers is contributing to a reevaluation of these older commercial areas. Once considered outdated, traditional markets and long-standing businesses are being reinterpreted as "hip" spaces among younger crowds. The stable consumer base of seniors, combined with the influx of younger visitors, is broadening the appeal of these districts.
However, not all older commercial areas are thriving. For senior consumer spending to translate into growth, factors such as transportation accessibility, diversity of businesses, density of essential services, and residential demand must be present. Cheongnyangni benefits from integrated transport development, while Jongno 3-ga maintains specialized sectors like jewelry, healthcare, and dining. Suyu Traditional Market plays a strong role in capturing local consumer spending.
Song Seung-hyun, CEO of Urban and Economy, noted, "Consumers aged 60 and older have accumulated extensive experience using traditional offline markets, which influences their preference for direct purchasing, dining, and enjoyment."
He added, "Old commercial areas like Cheongnyangni and Jongno are not just retail spaces; they also evoke nostalgia for seniors through offerings like fresh produce, seafood, and traditional medicine. Markets like Cheongnyangni and Gwangjang are regaining competitiveness by maintaining structures that allow for both wholesale and retail activities."
* This article has been translated by AI.
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