Lotte's Cheongnyangni annex to add 'Oldamu' brands

Malls, outlets compete fiercely to host Oldamu trio

Sales top department stores... tourists fuel growth

Exterior of Lotte Department Store's Cheongnyangni annex, set to open in the second half of this year.
Exterior of Lotte Department Store's Cheongnyangni annex, set to open in the second half of this year.

CJ Olive Young, Daiso and Musinsa — collectively nicknamed "Oldamu" — are increasingly opening stores inside department stores and shopping malls. Once seen as rivals to conventional retailers, the trio has become a coveted tenant for offline retail channels thanks to its strong ability to draw crowds.

According to industry sources Thursday, Lotte Department Store plans to open a new annex near its existing Cheongnyangni branch in the second half of the year, effectively expanding the main building into a complex shopping mall. The annex will occupy the first basement floor through the fourth above-ground floor of a nearby residential-commercial complex, operating separately from the existing store inside Cheongnyangni Station.

Reflecting the area's large youth population, the annex will house brands such as Chagee, the Chinese milk tea brand; hot pot chain Haidilao; and Vips, operated by CJ Foodville.

The Oldamu trio — CJ Olive Young, Daiso and Musinsa — will also open stores in the new annex. Olive Young will run a 528-square-meter store there and introduce its hands-on beauty care service, Skin Scan. Daiso will open a large store of about 1,650 square meters. Musinsa will relocate and expand the store it currently operates in the main building into the new annex.

Major offline retail channels now tout the presence of Oldamu brands as a competitive edge. Starfield Village Unjeong, operated by Shinsegae Property, expanded in April and highlighted having secured all three Oldamu brands as a key marketing point. Other complex malls and outlets — including Starfield Market Ilsan, Starfield Goyang, Starfield Suwon, Shinsegae Siheung Premium Outlet and Lotte Mall Eunpyeong — have also brought in Oldamu.

That is because Oldamu's clout now overshadows established retail channels. According to DART, the combined sales of the three companies last year reached 11.86 trillion won ($8.86 billion), up 18.5 percent from the previous year. In 2023, their combined sales surpassed those of South Korea's three major department store operators for the first time.

Foreign tourist demand has also fueled Oldamu's growth. As of August, 33 percent of Olive Young's offline sales came from purchases by foreign customers. Daiso's overseas card payment volume across all its stores rose about 100 percent between January and July compared with the same period last year. At Musinsa Standard stores in areas popular with tourists — such as Myeong-dong, Hongdae and Seongsu-dong — foreign customers accounted for about half of sales.

Established major retailers are hoping to capitalize on the foot traffic Oldamu generates. The three brands, meanwhile, benefit from the crowd-drawing power of large shopping malls — a win-win, according to industry analysts. "Bringing in Oldamu brands, which have a strong ability to draw customers, gives malls a chance to boost related purchases as well," an industry official said. "Hosting all of these brands is now seen as a key competitive advantage for shopping malls."


korean@heraldcorp.com