Shinsegai Acquires Lotte Department Store Centum City Branch

[Anchor]

Shinsegai Department Store has abruptly announced the acquisition of Lotte Department Store's Centum City branch, which had struggled for over two years to find a buyer. Shinsegai plans to combine the two department stores in the area to create a large-scale complex, signaling major changes to the retail landscape in Centum City, a key commercial district in Busan.

Ok Min-ji from KNN reports.

[Reporter]

Lotte Department Store's Centum City branch is being sold to its competitor, Shinsegai.

Having opened in 2007, the Lotte Department Store Centum City branch once surpassed 300 billion won in annual sales, but began losing ground in the competition after the world's largest Shinsegai Department Store opened nearby.

While Shinsegai expanded its presence by opening the Centum City Mall, Lotte's Centum City branch slumped into the lower tier of sales among Lotte department stores nationwide.

Lotte ultimately began pushing to sell the store in 2024, but struggled to find a buyer for over two years due to issues such as site zoning restrictions.

Initially, its competitor Shinsegai was not considered a potential buyer, but the move appears to be a bold gamble for management innovation.

Lotte stated, "This sale is a strategic move for choice and concentration," adding, "We will wrap up operations after providing sufficient guidance."

Shinsegai similarly maintained that "this acquisition is a decision that enhances the competitiveness of both companies," stating, "We will develop Centum City into a global tourism hub."

By acquiring the Lotte department store property, Shinsegai plans to transform the surrounding area into a large-scale "Shinsegai Town."

Its blueprint is to connect the existing store with the newly acquired store, while developing a hotel, residences, and other facilities on Lot C, currently used as an outdoor parking lot, into a complex that encompasses shopping, accommodation, and tourism.

[Interview / Oh Chang-ho, Department of Tourism and Convention, Youngsan University]:
"We see this as providing sufficient motivation to attract tourists. Having the world's largest department store retail complex in Busan is expected to generate many positive effects not only for tourism, but also from various other perspectives."

Attention is now focused on whether the retail landscape of Centum City, entering a new phase, can become a fresh growth engine for Busan.

(Video by Jeon Jae-hyun / KNN)

Ok Min-ji, KNN
※ Please note: This article was translated by AI and may contain errors.