Luxury watches, jewelry rise as new growth engine for department stores

Luxury watches, jewelry rise as new growth engine for department stores

최초입력 2025.05.02 11:23:38

(Newsis)

Luxury watches and high-end jewelry are replacing designer handbags and fashion as the main drivers of sales growth in South Korean department stores.
According to multiple sources from the retail industry on Thursday, Lotte Department Store reported a 5 percent increase in total luxury sales in April, with watches and jewelry up by 20 percent. As bag and fashion sales slowed, high-end accessories lifted overall performance.
Shinsegae Department Store saw a 27.1 percent increase in luxury jewelry and watch sales from January to April, more than triple the total luxury category’s growth rate of 8.4 percent. The segment has shown sustained momentum since last year.
According to Hyundai Department Store, luxury jewelry and watch sales grew 23 percent last year and surged by 35 percent from January to April this year.
Industry insiders say the democratization of luxury handbags has shifted affluent customers toward rarer, more investment-worthy goods. “During the Covid-19 pandemic, people splurged on luxury bag,” said a retail official. “Now they’ve become too common, and watches and jewelry are gaining the spotlight.”
Limited availability and strong resale value have made these items especially attractive.
Despite the economic downturn, demand from high-net-worth individuals remains strong. “While middle-class consumers are tightening their wallets, VIP customers continue to spend. They want items that set them apart,” another insider noted.
As the market expands, luxury watches and jewelry are becoming cornerstone categories in department store portfolios.
At Galleria Department Store, the segment accounted for 19 percent of total sales during January and February this year, more than double its 2019 share of 8 percent.
Executives from Shinsegae and Hyundai even flew to Switzerland for the Watches and Wonders trade fair held April 1–7 in Geneva, underscoring the segment’s strategic importance.
Over 60 prestigious watch brands participated, including Rolex, Patek Philippe, and Vacheron Constantin.
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