Major South Korean department stores including Shinsegae and Hyundai are making a push into the Japanese market, opening stores and pop-up shops, with fashion at the forefront of their strategy.

With sluggish domestic demand and changing shopping patterns leading to stagnant sales, retailers are seeking growth opportunities abroad and leveraging them to strengthen global competitiveness.

Shinsegae Department Store announced on Wednesday that it signed a memorandum of understanding with Tokyu Retail Management, a subsidiary of Japan’s Tokyu Corp., to collaborate on branding, promotions, and business models.

Tokyu, which operates railway lines, also runs department stores, shopping malls, hotels, and resorts based on its prime real estate near major train stations and central areas.

Shinsegae is focusing on using Tokyu’s commercial spaces in central Tokyo, particularly Shibuya.

By setting up pop-up stores or establishing outlets in Tokyu facilities, Shinsegae plans to promote its fashion shops, especially to young consumers.

Next month, it will launch a pop-up store for its youth-oriented fashion shop, Shinsegae Hyperground, at Shibuya 109, a landmark shopping center. The store will showcase fashion brands popular with young people, including Mucent and Three to Eighty.

Shibuya, a hub drawing some 3 million daily visitors, including foreign tourists, is seen as a strategic launchpad for broader expansion.

Hyundai Department Store is accelerating its entry into the Japanese market with permanent stores.

Last week, it opened its Hyundai Global Retail Shop inside Parco Shibuya mall, the first time a Korean department store has launched a regular store in Japan rather than temporary pop-ups.

The debut brand, Treemingbird, attracted strong crowds and sales.

Hyundai Department Store aims to open a flagship in Tokyo’s Omotesandō district in the first half of 2026 and expand to five stores in Japan within five years.

The push into Japan comes as sales at home falter. Shinsegae’s sales slipped to 11.49 trillion won ($8.1 billion) last year from 12.49 trillion won in 2022, while Hyundai’s sales fell to 10.06 trillion won from 10.52 trillion won during the same period.

With Japan regarded as a global powerhouse in department stores and fashion, industry executives say success there could pave the way for further expansion into Southeast Asia.

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