November 25, 2024

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IFC Mall in Yeouido, western Seoul (IFC Mall)

The IFC Mall, a shopping complex in Seoul’s financial district of Yeouido, is enjoying a sales boom, benefiting from a surge in visitors following the high-profile opening of a new neighbor – The Hyundai Seoul, the nation’s largest department store.

According to the mall on Monday, sales and visitors increased 10 percent and 8 percent, respectively, last year compared to 2022, when the mall saw a 60 percent jump in on-year sales. Sales also surged to a record high but the exact figures were not disclosed.

The number of people who signed up for IFC Mall memberships to get benefits and discounts on events also increased by 657 percent among customers in their teens or 20s, while it more than doubled among those in their 30s or 40s.

Industry watchers agree that the Hyundai department store is definitely a key factor in attracting Generation MZ customers, a term that collectively refers to Korea's millennials and Gen Z.

“The Hyundai (Seoul) has become a must-visit shopping site among Generation MZ. Visitors to the department store find themselves taking a stroll in the neighborhood, including the adjacent IFC Mall,” said Lee Hong-joo, a consumer economics professor at Sookmyung Women’s University.

The Hyundai Seoul opened in February 2021, boasting 89,100 square meters of floor space -- about the size of 13 football fields. Affectionately called “an MZ playground,” the department store exceeded 1 trillion won ($4.5 million) in sales last year – a record achieved in the shortest period by a local retailer.

Lee further said that the key allure for young consumers of the IFC mall lies in its comprehensive "one-stop service."

"They (young consumers) engage in shopping for fashion and dining but also seek a holistic experience, exploring regularly occurring pop-up zones, visiting unique experiential spaces and immersing themselves in arts and movies. And these are all housed within the (IFC Mall) complex."

Located across the street from the IFC Mall and connected via an underground path from the subway station, The Hyundai Seoul draws a considerable influx of young shoppers. The increased foot traffic, coupled with IFC Mall's own interactive experience zones and trendy dining options, has positively impacted sales.

Foreign nationals are also contributing to the increased store traffic.

The mall’s website saw access by visitors of foreign nationality more than triple in November last year, following an English update carried out a month earlier.

“An increasing number of young tourists now prefer individual travel over group tours, seeking more authentic shopping experiences rather than cheaper deals at duty-free stores,” said an official from a local duty-free store who wished to be unnamed. “That shift, affected by real-time information shared via social media, is also boosting sales of local retailers, including the IFC Mall.”

IFC Mall has been consistently updating its experience-oriented stores with diverse themes, as can be seen in the mall's Dyson Demo Store, which offers customers the chance to demo the brand's latest products, or the Ballan Connected Store, where one can try on online products in partnership with the luxury platform.

An IFC Mall official said that they are planning a range of exhibitions and festivals for this year as well to cater to the evolving preferences of the mall's target customers, including tourists from overseas.

By Kim Hae-yeon (hykim@heraldcorp.com)