X

Shinsegae seeks shift in retail business with Starfield

By Sohn Ji-young
Published : Sept. 9, 2016 - 16:15

Starfield Hanam, South Korea’s largest shopping mall complex operated by local retail giant Shinsegae Group, officially opened its doors to the public on Friday.

Designed as an all-in-one space for shopping, dining, leisure and entertainment, Starfield aims to become a so-called “shopping theme park” for locals looking to spend a relaxing as well as interactive day at the mall, Shinsegae said.

“We worked hard to make Starfield Hanam more than just a shopping mall but a ‘shopping theme park’ offering services for leisure, entertainment, sports and dining,” Shinsegae Group Vice Chairman Chung Yong-jin said during his speech at the mall’s grand opening ceremony on Friday.

“Learning from and experimenting with the features of successful overseas (shopping malls), we took great care to create something that has never existed before,” Chung said.


Shinsegae Vice Chairman Chung Yong-jin (right) and Taubman Centers Chairman Robert S. Taubman walk around Starfield Hanam on Friday. (Lee Sang-sub/The Korea Herald)


A major project spearheaded by the Shinsegae vice chairman, Starfield stands at the center of the Korean retail giant’s efforts to secure long-term growth as its traditional retail business continues to decline in a new era of online and mobile shopping.

Located some 20-kilometers from Seoul, the Hanam-based shopping complex was built as a 51:49 joint venture by Shinsegae Group’s real estate development unit and the Asian branch of US mall operator Taubman Centers with some $1 billion in investment.

Starfield Hanam aims to post 820 billion won ($745 million) in revenue in the first year, hoping to raise this number to 5 trillion won within 4-5 years, according to Shinsegae Properties.

Following a three-year period for stabilizing its business, Starfield is expected to generate an annual profit of around $80 million, said Taubman Centers chairman Robert S. Taubman during a press conference on Friday.

As multiple rival shopping malls already exist in Seoul -- such as the Lotte World Mall in Jamsil and the Coex Mall in Gangnam -- Shinsegae and Taubman are betting their stakes on Starfield’s diverse offerings, facilities and relaxing ambience in ensuring that customers stay and return.


A view inside Starfield Hanam (Shinsegae Group)


“The biggest difference between Starfield and existing domestic shopping malls is the critical size of the project -- the entertainment destination of the project,” the Taubman chairman told reporters.

Starfield is a four-story building with three underground floors, covering about 460,000 square meters -- the equivalent of about 70 football fields, according to Shinsegae. It features around 750 stores, including the Shinsegae Department Store and wholesale retailer E-mart Trader’s, alongside a parking lot that can accommodate 6,200 automobiles.

Visitors are presented with a wide spectrum of shopping options ranging from renowned luxury labels like Louis Vuitton and Prada to fast-fashion brands and stores selling accessories, household items and baby goods — all which have been strategically organized for easy, customer-centered navigation.

Deviating from conventional shopping malls, Starfield also houses stores that specifically target male customers -- including Shinsegae’s electronics retailer Electro Mart and showrooms for major auto brands such as Hyundai Motor, BMW and Harley-Davidson. A Tesla store is scheduled to open by the year’s end.

The mall features two main dining areas as well -- a European-style outdoor street featuring 17 restaurants and cafes, and an indoor food court equipped with 18 kiosks specializing in various local and international cuisines.


Electro Mart located inside Starfield Hanam (Shinsegae Group)


On top of the abundant shopping and dining options, the mall also offers exclusive entertainment venues -- most notably Aquafield, an indoor and outdoor water park and spa, and Sports Monster, Korea’s first in-mall recreational sports park featuring a rock climbing wall, trampolines, an outdoor futsal field and more.

At the end of the day, Starfield’s core mission is to become “a place to spend the day,” said Taubman, emphasizing the mall’s spacious design and natural lighting aimed at creating a relaxed, inviting environment for shoppers and make them want to stay.

“We have no reservations about any of the space we planned. All of the spaces will get good customer flow. And with good customer traffic, our retailers will have an opportunity to make good profit,” he said.

Looking ahead, Taubman and Shinsegae are preparing to build new structures on the remaining land that lies across Starfield, and are “discussing various ideas” on what could be developed there, according to Taubman.

The Taubman chief also expressed a keen interest in pursuing additional endeavors other than Starfield in partnership with Shinsegae in the future, noting that it “absolutely wants to invest more in Korea.”

By Sohn Ji-young (jys@heraldcorp.com)


MOST POPULAR

More articles by this writerBack to List