MARKETBEAT
Retail Snapshot Q4 2015
Seoul, South Korea
Economy
Economic Indicators
The Bank of Korea recently cut its outlook for this year to 2.7% from its July
12-Month
Forecast
forecast of 2.8%, as exports decreased due to a slower Chinese economy.
2014
2015
GDP Growth
3.3%
2.7%
increase rate of consumer prices was revised downwards to 0.7% from 0.9%
CPI Growth
1.4%
0.7%
due to sustained lower oil prices. Interest rate has remained at an all-time low
Unemployment
3.3%
3.3%
The Bank also expected the economy to grow 3% in 2016. The annual
of 1.5% after four rate cuts since August last year to support growth. Slowing
export momentum and rising household debt could hinder South Korea’s
economic recovery.
Major Retail News
Prime Retail Rents - 2015
ZARA’s parent company, Inditex, was chosen as a preferred bidder for the M
MAINSTREETS
LOCAL
CURRENCY
EURO
US$ Q-O-Q CHANGE Y-O-Y
CHANGE
SF/YR
SF/YR
Myeongdong
903,689
853
855
-
2%
world with eight brands including ZARA, Pull&Bear, Massimo Dutti, Bershka,
GangnamSt.
722,820
682
683
-
7%
Stradivarius, Oysho, ZARA Home and Uterque. Recently, Inditex SPA brand,
Garosugil
363,199
343
343
-
10%
Plaza building at approximately KRW430 billion. The building will be home to
ZARA and Forever 21. Inditex is one of the largest fashion retail groups in the
‘Oysho’ has launched its lifestyle brand specializing in women's homewear
and undergarments in COEX mall. ZARA's second brand, bershka, also
opened its Korean flagship store in the Hongdae University area. The new
* KRW/SQM//MO. Exchange Rate: 1USD = KRW 1,179 1EURO =KRW 1,280
flagship store is six storeys and about 1,875 square meters (sq.m.) of sales
Source: Cushman & Wakefield Korea Research,
Notes:
area in Myeongdong.
1. Based on newly contracted or re-contracted location in prime high street
2. Ground floor occupancy cost (CAM inclusive)
Lifestyle stores
LINE character brand, ‘LINE FRIENDS’, opened its second flagship store in
November. This store is located at Itaewon with a total floor space of 1,128
Significant Leasing Transactions
sq.m., and is the largest amongst the LINE FRIENDS stores in the world.
PROPERTY
LOCATION
TENANT
SQUARE METER
Cheongdam-dong
Cheongdam-dong
Lululemon
Itaewon
Itaewon
LINE FRIENDS
Occupying three storeys of a building located on Itaewon, it carries LINE
FRIENDS products and character-themed items such as beverages and
300
1,128
desserts. 'Flying Tiger Copenhagen', established in Denmark, is preparing to
enter the Korean market and is expected to open its first store in Hongdae.
Outlook
Doosan Group entered the market, securing the rights to open its first duty-
Significant Projects Under Construction
free stores. Shinsegae also plans to open a new duty-free store in MyeongPROPERTY
LOCATION
SQUARE METER
COMPLETION DATE
Union Square
Hanam
330,000
2016
Paradise City
Incheon
19,000
2016
dong, the shopping district. Meanwhile, the duty-free store in Sheraton Grand
Walkerhill Hotel and Lotte World Tower will close operations because Lotte
and SK networks lost their duty-free licenses. The inflow of Chinese tourists
and the associated rise in retail consumption in new duty-free stores
including HDC Shilla, Hanhwa, Doosan and Shinsegae EDF will expand the
retail main shopping area from the Myeongdong to Yongsan, Yeouido and
Dongdaemun areas.
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Copyright © 2016 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered
to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
Judy Jang
Senior Manager
6F Seoul Finance Center
136, Sejong-daero, Jung-gu
Seoul, 100-768, Korea
Tel: +82 318 8322
Fax: +82 318 8323
judy.jang@cushwake.com
www.cushmanwakefield.com