Department stores double down on F&B as foot-traffic driver

Hyundai Department Store's Trade Center branch to get new Eataly location

Shinsegae's Sweet Park to welcome Van Leeuwen, Chipotle and more

Lotte courts premium brands including Pierre Hermé Paris

Hyundai Green Food's Eataly outlet in the Middle East. [Provided by Hyundai Green Food]

South Korea's department stores are accelerating their food and beverage expansion, as F&B has emerged as a key driver of foot traffic and customer dwell time.

Eataly, operated by Hyundai Green Food, is set to open a new store at Hyundai Department Store's Trade Center branch sometime in July or August — its first new location in roughly two years, following the opening of its third outlet at Hyundai Department Store's Jungdong branch in 2024.

Hyundai Department Store's in-house café brand Till White opened its second location at the Apgujeong flagship last month. The company plans to add outlets at the Trade Center and Pangyo branches before the end of the year.

Shinsegae Department Store is working to attract buzzworthy F&B names. Six new brands are set to open in succession at Sweet Park — the below-ground first floor of the Gangnam branch that has become a destination for food lovers — with all openings slated for the second half of this year.

American ice cream brand Van Leeuwen will open its second Korean location at Sweet Park this month; its first is near Gangnam Station. The brand drew attention earlier this year when Twosome Place signed a master franchise agreement to bring it to Korea.

Japanese fresh-doughnut brand I'm Donut? recently opened its third domestic store at Sweet Park as well. A café featuring Japanese character Pompompurin, Chinese premium milk tea brand Chagee and American Mexican food chain Chipotle are also slated to join the lineup.

Customers queue outside I'm Donut? at Sweet Park on the below-ground first floor of Shinsegae Department Store's Gangnam branch. [Provided by Shinsegae Department Store]

Lotte Department Store is placing its bets on upscale F&B. French premium dessert brand Pierre Hermé Paris will open its second Korean store at Lotte World Mall in Jamsil on July 10 — following its first standalone location, which opened at Galleria Department Store's luxury wing in May. Lotte also brought in Japanese premium matcha dessert brand Kyoto Perfect Matcha and Dubai premium dessert brand Bateel in 2024.

F&B sales figures reflect the momentum. Shinsegae's sweets category posted 26.9 percent growth in the first half of this year compared with the same period last year, with Sweet Park at the Gangnam branch up 28.1 percent. Lotte Department Store's F&B sales rose 20 percent, while Hyundai Department Store's food sales climbed 18.8 percent in the first quarter.

An industry official said F&B lets customers experience the latest trends at a relatively accessible price point compared with luxury goods or fashion, which encourages more frequent visits. "Customers who come in for a meal or dessert often end up browsing fashion, beauty and home goods as well," the official said, "and that naturally lifts sales across the entire store."

korean@heraldcorp.com