"Hipper Than Seongsu-dong"... Department Stores Become 'Pop-up Meccas' Amid Scorching Heat

Pop-up Stores Become Core Attractions at Department Stores
Prioritizing 'Experience' Over Products...
A Stay-and-Enjoy Strategy to Capture Experiential Consumption

#The Hyundai Seoul launched experiential content last month to coincide with the release of the film "Spider-Man," featuring themes such as escape rooms and treasure hunts. The department store attracted family visitors through this unique pop-up store coordinated with the movie’s premiere. Lotte World Mall also organized a pop-up shop for "Hachuping and the Legend of the Whale Jewel" merchandise, timed with the film's release. This strategy aims to engage customers who are visiting indoor spaces, like cinemas, to escape the heat, increasing their time spent at the venue by connecting it with the pop-up events.

Last month, the first pop-up store of AI creator "Jeong Seobul An Kim Hamzzi" held at Shinsegae Department Store Gangnam branch was so popular that it sold out within 10 minutes of the start of pre-reservations. Photo by Shinsegae Department Store

Department stores have emerged as prime destinations for pop-up stores. The trend is driven by the strong draw that comes from securing pop-up events featuring popular intellectual property (IP) characters, K-pop artists, and hip brands. As a result, department stores have seen a tangible increase in visitor numbers. In addition, with record-breaking heatwaves recently, department stores have become 'urban summer resorts,' prompting a shift in pop-up demand from Seongsu-dong to department stores.

According to the department store industry on August 7, the number of pop-up stores operated by the three major department store chains—Lotte, Shinsegae, and Hyundai—has increased by about two to three times over the past three years. Pop-ups have become a core attraction for customers, prompting the stores to significantly expand their operations.

At The Hyundai Seoul, often referred to as the 'pop-up mecca,' the number of annual pop-up events increased from about 210 in 2022 to around 440 in 2023—more than doubling. In 2024, that figure rose to approximately 480, and last year it reached around 660. In the first half of this year alone, roughly 330 pop-up events were held, which means nearly two pop-ups occur each day. Shinsegae Department Store Gangnam held about 400 pop-up events in the first half of this year alone, surpassing the entire number of pop-ups hosted last year. At Lotte Department Store, utilizing the large space at Jamsil Lotte World Mall, around 450 pop-up stores were held in the first half of this year.

The main reason for this expansion is the high 'visitor attraction effect' of pop-up stores. Pop-ups offer a unique experience for a limited time, drawing customers through their exclusivity and the viral effect on social networking services (SNS). This, in turn, encourages spending across other product categories such as food & beverage (F&B), fashion, and home living. Whereas department stores used to attract customers mainly by the brands they hosted, now they first bring in visitors through pop-up events, and then connect them to shopping.

An industry insider commented, "Pop-up events are now hosted throughout the year, so it's difficult to accurately measure F&B or nearby store sales during these periods. However, pop-up events account for about 10% of annual sales."

There is also analysis suggesting that the formula for pop-up success established in Seongsu-dong is now migrating to department stores. While Seongsu-dong became the trendsetting hub for new brands, department stores have begun to absorb that role. Previously, a brand that became a sensation in Seongsu-dong would soon enter a department store, but now department stores are directly securing popular brands and IP themselves and designing unique customer experiences.

In particular, department stores are moving beyond simple brand pop-ups to launch large-scale projects featuring performances, exhibitions, characters, K-pop, and other cultural content. More cases are emerging where exclusive pop-ups are held in conjunction with specific events, local festivals, or major performances. For example, last year, Shinsegae Department Store hosted exclusive pop-ups like the '2025 MAMA Awards Exclusive Pop-up Store' and the 'Squid Game 3 Finale Pop-up Store,' linking them with trending K-content. The strategy is to position the department store as a comprehensive cultural complex—a place to spend an entire day—rather than just a shopping destination.

This trend is further reinforced by the persistent heatwave. As more consumers seek indoor spaces to avoid temperatures exceeding 35 degrees Celsius, department stores have become venues where people can enjoy shopping, dining, and immersive experiences all at once. A virtuous cycle is created, where a customer visits for a pop-up event and naturally consumes food, merchandise, and cultural content in a single visit.

An industry official stated, "In the past, the strength of a department store was determined by how many good brands it hosted. Now, competitiveness hinges on how much exclusive content you can secure to encourage customers to visit intentionally. Pop-ups are a key strategy—not just short-term events, but core drivers that attract visitors and foster repeat visits to the department store."

This content was produced with the assistance of AI translation services.