Shinsegae Main Branch Bets All on Duty-Free Business

Shinsegae Department Store in downtown Seoul is set to open its duty-free shop next week after a large-scale renovation.

The eighth to 12th floors, a quarter of the total business area, have been transformed into duty-free shops in a never-ending quest for Chinese money, while other facilities have also been remodeled to offer a better shopping environment for foreign customers.

The renovations shift the store's focus squarely on the duty-free business, with the number of brands there decreasing from 610 to 520 as Koreans desert offline malls for more individual shopping experiences.

Instead, there is now a kiosk where foreign customers can get an immediate VAT refund or use international delivery services. They also can store their luggage in the basement while shopping.

Shinsegae hopes to increase the proportion of sales to foreigners to over 20 percent of the main branch's total sales.

But it remains to be seen whether it can achieve the goal without the top three luxury labels Louis Vuitton, Hermes and Chanel, which are often the biggest draw for the newly rich from abroad.

Meanwhile, Shilla's duty-free shop, which opened in Yongsan in March, has recently succeeded in persuading Louis Vuitton to set up shop there.