Lotte Department Store AI STUDIO Head Choi Sung-cheol: Using Customer Data to Turn Brand Negotiations from Subjective Persuasion into Objective Discussion

Choi Sung-cheol, head of AI STUDIO at Lotte Department Store in South Korea, described in a recent interview with ZDNet Korea a concrete shift: after introducing Brand AI, the biggest difference in negotiations with prospective tenant brands is that both sides can finally discuss things objectively based on data, rather than relying on subjective persuasion.

The starting point of this shift is 'Customer DNA.' Lotte Department Store uses Customer DNA — which contains customer age, spending tendencies and emotional attributes — to uncover the potential of emerging or small-to-medium brands: finding brands whose customer characteristics resemble those of existing brands but which have little sales history. Choi says large brands already attract plenty of attention and data; what AI genuinely adds is surfacing emerging brands whose Customer DNA matches that of mature brands.

Brand AI went live at the end of July 2026. When a merchandise planner enters a brand name, the system automatically generates core performance metrics, a brand relationship network and comparisons with similar brands. Choi emphasized that AI's role is 'to provide options and evidence' — showing multi-dimensional data and relationships to widen the range of choices available for review — but final decisions on tenancy and store layout remain with the planner. Factors that are hard to quantify, such as a brand's emotional tone, market reputation, store display potential and a partner's willingness to cooperate, are areas where the planner exercises comprehensive judgment.