Department stores, outlets, and fashion brands are accelerating their focus on food and beverage (F&B) offerings. This strategy aims to attract customers to physical stores by emphasizing culinary experiences and ambiance that are difficult to replicate online, thereby increasing dwell time and encouraging additional purchases across different product categories.
According to industry sources, Shinsegae Department Store's Gangnam location will sequentially introduce four new brands in the basement Sweet Park by next month. The first to open will be I'm Donut, a Japanese brand known for its popular doughnuts, which will launch its third store in South Korea on June 30.
In July, the Pom Pom Purin Cafe, utilizing the character intellectual property from Japan's Sanrio, and the American premium ice cream brand Benluen will also open. The Pom Pom Purin Cafe will sell character-themed desserts and merchandise to target its fan base.
The Finnish lifestyle brand Marimekko will also establish a permanent store at the Gangnam location this month, transitioning from previous pop-up stores operated in 2019 and last year. This move aims to enhance both F&B and fashion and living content, creating a space where customers can linger longer.
In the second half of the year, the Chinese premium milk tea brand Cha Cha will join the lineup. Cha Cha is known for its takeout popularity and active social media presence.
Hyundai Department Store is not only attracting renowned eateries but also nurturing its own F&B brands. The cafe Til White, first introduced at The Hyundai Seoul last year, has recently expanded to the Apgujeong flagship store. This location features a premium dining cafe concept with beverages and baked goods tailored to the store's characteristics.
Hyundai plans to introduce Til White at the Trade Center and Pangyo locations later this year. Rather than replicating the same store format, the strategy is to adapt menus and spaces according to the customer demographics and market characteristics of each location, developing unique content for the department store.
Additionally, Hyundai Department Store has recently introduced well-known eateries such as 'Imoya Kinjiro' and 'Coffee One' at The Hyundai Seoul's basement level. A Hyundai spokesperson stated, "We are actively working to attract new stores to gather both famous domestic eateries and international brands, providing content that reflects the latest trends."
Suburban outlets are focusing on increasing family customers' dwell time. Lotte Premium Outlet is introducing various F&B content centered around its signature space, 'Tasty Ground.' On July 1, the Paju location will welcome 'Jangin's House,' a specialty dumpling shop, while the Gimhae location will introduce 'Jeju Samdae Noodles,' and the Giheung location will feature 'Soi Yeonnam.'
The Lotte Premium Outlet in Uiwang will unveil the family restaurant 'Outback Steakhouse' on the second floor and 'Jeong Ji-young Coffee Roasters' on the third floor on July 9. Earlier, on June 19, the first floor's Tasty Ground opened a burger brand, 'Shake Shack,' with over 90 seats.
Kwon Jin-hee, head of the F&B team at Lotte Department Store Outlet & Mall, stated, "We plan to continuously expand large family-friendly F&B content to meet the high demand for family customers, enhancing our ability to attract visitors."
The F&B competition is also spreading to the fashion industry. Hansome is expanding its own F&B brand, 'Cafe Time,' to enhance customer engagement. Cafe Time was first introduced at the flagship store 'Time Seoul' in the luxury shopping district of Cheongdam-dong last year. This year, a second location opened in February at The Hansome House Seoul in Daechi-dong, broadening its F&B business.
Hansome's American lifestyle concept store, 'Kiss Seoul,' also features an ice cream bar called 'Kiss Treats.' This strategy encourages customers to visit the store even without purchasing fashion items, allowing them to sample limited menu offerings and thereby expanding engagement with new customers.
F&B also lowers the entry barrier for high-end fashion brands. While purchasing clothing or bags costing tens of thousands of won can be daunting, enjoying coffee and desserts allows customers to experience the brand's atmosphere at a relatively low cost. This naturally encourages customers to linger, providing brands with opportunities to connect with potential future buyers.
An industry insider noted, "In the past, F&B spaces were merely conveniences for a brief rest during shopping, but now specific restaurants or cafes are becoming key content that drives store visits. The ability to differentiate the experience of eating and drinking will translate into competitive strength in offline retail."
* This article has been translated by AI.
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