Will 'Department Store Staycations' Decline and Holiday Shopping Surge? Which Department Stores Will Close for Two Days?

Chuseok Holiday Shortened from Nearly Ten Days to Four

Last Year, Department Stores Saw 25-35% Rise in Daily Sales, While Supermarkets Fell 5%

Department Stores to Close for Two Days During Chuseok Holiday This Year

This year, with the Chuseok holiday lasting only four days, changes are expected in the holiday sales patterns across the distribution sector, including department stores and large supermarket chains. Last year, during a long holiday period, department stores and outlets attracted large numbers of visitors, whereas supermarkets saw a decline in sales as shopping demand was spread out. This year, attention is focused on whether these trends will change as the holiday period shortens.

According to the retail industry on September 23, this year's Chuseok holiday will last for four days, from September 24 to 27, which is significantly shorter than last year. As a result, there is a possibility that the holiday business performance of department stores and outlets, which benefited from the extended break, and large supermarket chains, which underperformed comparatively, may shift.

Last year, the Chuseok holiday formed a long break of nearly 10 days as it overlapped with National Foundation Day and Hangul Day. The biggest beneficiaries were department stores and outlets.

During last year's Chuseok holiday, the average daily sales of Lotte Department Store increased by 35.0% year-on-year. Shinsegae Department Store’s daily sales rose by 25.5%, and Hyundai Department Store by 25.2%. Average daily visitors also increased by more than 25%. Lotte World Mall and Lotte World Tower attracted 1.5 million visitors during the holiday, and traffic at Shinsegae Simon’s metropolitan area outlets rose by more than 15% on average compared to the previous year.

Shinsegae Department Store Gangnam Branch exterior. Shinsegae

In contrast, large supermarket chains did not enjoy the benefits of the long holiday. The average daily sales during the Chuseok holiday for Emart and Lotte Mart decreased by around 5% year-on-year. The decrease was attributed to shopping demand being distributed over several days due to the extended holiday, and an increase in outbound travelers.

This year, the situation is different. With only four days for the Chuseok holiday, the extended "holidaycation" or "department store staycation" effect seen last year is expected to be limited. On the other hand, supermarkets may see a different sales pattern, as demand for holiday shopping and gift purchases could concentrate in the short pre-holiday period.

Overview of the Meat Department at Lotte Mart Zetaflex Seoul Station Branch. Lotte Mart

For department stores, not only is the holiday short, but two closing days are included, leaving few business days. Most stores of Lotte Department Store, Shinsegae Department Store, and Hyundai Department Store will close for two days during the Chuseok holiday. Lotte Department Store will close 29 branches, including the Main Branch and Jamsil Branch, on September 24 (the day before Chuseok) and September 25 (Chuseok day). The Centum City Branch will close September 25 and 26. Shinsegae Department Store will close 11 branches—including Gangnam, Times Square, South City, and Centum City branches—on September 24 and 25. The Main Branch will close September 25 and 26. The Hanam Branch will close only on September 25. Hyundai Department Store will close 11 branches—including Trade Center, Cheonho, Mia, Mokdong, Jungdong, Kintex, Pangyo, Ulsan, Chungcheong, The Hyundai Seoul, and The Hyundai Daegu—on September 24 and 25. The Apgujeong Main Branch and Sinchon Branch will close on September 25 and 26.

Large supermarket chains will operate normally for most of the holiday, except for Chuseok day itself. On Chuseok day, 87 Emart stores will operate from 11 a.m. to 9 p.m., while 45 stores, including Yangjae and Cheonggyecheon branches, will be closed. Out of 112 Lotte Mart stores, about 30 will be closed on Chuseok day, while open branches will shorten business hours to 11 a.m. to 10 p.m.

Outlets will also be closed or have reduced hours on Chuseok day. Lotte Outlet’s 21 branches, Fitin Sanbon, and Hyundai Outlet will be closed on September 25. Shinsegae Simon Outlet will open later than usual on Chuseok day, starting at 12 p.m. instead of 10 a.m. Five Lotte Mall locations, including Jamsil Lotte World Mall and Time Villas Suwon, will operate from 12 p.m. to 10 p.m. with shortened hours on this day.

An industry official stated, "While last year was characterized by 'extended-stay consumption' utilizing a long holiday, this year is likely to see 'concentrated consumption' with spending compressed into a shorter period."

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