Hanwha Galleria has recorded a 4-per-cent uptick in sales for the first half of this year despite expecting negative growth against the backdrop of the coronavirus pandemic.
Observers have suggested the business was did well to drop duty-free outlets and restructure to implement premium specialised strategies, including a VIP program for wealthy clientele and strong luxury-category sales.
Galleria also launched a new branch in Suwon in February after shuttering its very first department store in the same area due to stagnating sales.
According to a Korea Times report, the firm “adopted the same strategy as Britain’s Selfridges to survive in the market”, focusing on “key branches to make huge investments in them and overcome its smaller business scale”. The department stores have distinguished themselves against competitors in the market with a close focus on its core strength – VIP-centred premium business.
The report shows that Galleria has built each of its five outlets within the territory into the top player in each region with a mean sales growth of 3.3 per cent over three consecutive years.
The company is on track to hit a sales record of US$1.85 billion by the end of the year.