In an attempt to curb slowing brick-and-mortar sales, the Lotte Department Store has launched a new concept mall called Lotte El Cube. Unlike the retailer's other stores, the new venue will be relatively small in size and it will cater to younger, more fashion-conscious shoppers.
The mall itself will cover just under 6,800 square feet and it will include a curated selection of brands such as PlayNoMore, Pigment and Tomotom's. Because of its smaller size, Lotte El Cube can adopt different concepts and adapt to changing consumer needs. The inspiration for the concept mall comes from Japan's Isetan Department Store, which operates several smaller branches that cater to niche demographics.
With the rise of online shopping, the new department store concept demonstrates how traditional retailers can lure millennials back to brick-and-mortar locations.
Compact Korean Shopping Malls
The Lotte El Cube Mall Caters to Young, Fashion-Conscious Shoppers
Trend Themes
1. Compact Department Stores - The creation of compact department stores aims to attract younger, fashion-conscious consumers by offering a curated selection of products in smaller, more convenient spaces.
2. Niche Demographic Retail - Retailers can replicate the success of Japan's Isetan Department Store in creating smaller branches that cater to specific markets and demographics.
3. Adaptive Concept Malls - Smaller, more flexible concept malls can adapt to changing consumer needs and provide unique shopping experiences, such as the Lotte El Cube Mall in Korea.
Industry Implications
1. Department Stores - Department stores can use the compact, niche-oriented concept of Lotte El Cube Mall to revitalize brick-and-mortar locations and target younger consumers.
2. Fashion Retail - Fashion retailers can benefit from the trend of curated selection and adaptive concept malls by offering unique shopping experiences and targeting specific demographics.
3. Retail Real Estate - The rise of compact, adaptive concept stores may lead to changes in retail real estate development, such as smaller footprint buildings and increased emphasis on niche-oriented spaces.