New Daegu Shinsegae has provincial focus
Korean retail giant Shinsegae Department Store’s new Daegu Shinsegae is a large-scale shopping and entertainment complex connected to a transportation hub in the southern city.
Covering more than 103,000 sqm, it is Shinsegae Department Store‘s second large-scale branch outside of Seoul, following the Centum City branch in Busan. As well as traditional shopping areas, Daegu Shinsegae has a rooftop aquarium, indoor and outdoor mini theme parks, an art gallery and a concert hall.
Shinsegae invested KW880 billion (US$755 million) in the project, the largest amount for any single Shinsegae Department Store branch.
Daegu Shinsegae shares four floors with the new Dong-Daegu Intermodal Transfer Center, the culmination of a five-year project together with the Daegu Metropolitan City Government and the Ministry of Land, Infrastructure and Transport. It offers access to KTX and subway trains as well as buses.
“We hope to use the transfer centre to create a network of consumers in nearby cities as we have to target consumers across the north Gyeongsang province area rather than just focussing on Daegu,” says store CEO Jang Jae-young.
“Our market research found that Daegu consumers are unwilling to travel to other cities like Busan in order to shop, but on the other hand consumers from other cities are willing to come to Daegu,” says Daegu Shinsegae deputy chief Hong Jung-pyo.
He says the centre will be different from the Shinsegae branches in Seoul, which gain most of their revenue from luxury products. Its strategy instead will be to attract a more mass consumer base with its family entertainment and young casual attractions.
More than revenue, however, Jang says Daegu Shinsegae will first focus on smooth running and working with the surrounding community.