In department stores, according to Inside Retail, only 1% of top-spending customers account for around 25% of sales, while the top 20% of spending accounts for 80% of store sales.

As a result, South Korean department stores have been improving the VIP shopping experience in recent years by renovating their stores and expanding their concierge services for top customers. One such retailer, Galleria Department Store, opened a VIP clubhouse in late 2019 to cater to its biggest spenders. Only shoppers who spend at least 40 million won per year have access to this special location and the deals within.

According to CNBC, South Korea spends the most per capita on luxury goods in the world, but Statista says the United States is expected to have the highest sales, reaching a total of $77.3 billion in 2024.

The benefits of having regular VIP customers at a department store can be enormous. If VIP customers are happy to shop with you again, they will contribute to sales on a regular basis and can also draw attention to the department store from other VIPs and customers in general.

Software company Retail Pro International explained that VIP experiences can build loyalty among luxury retailers. “Customers who spend thousands of dollars expect to feel valued,” the company explained. “These programs go a step further and provide an even better experience for customers who are not only big spenders but are often influential as well.”

In addition, according to KED Global, many VIP customers are foreigners. For example, the Hyundai Department Store’s Trade Center in South Korea serves over 500 foreign VIP customers who regularly spend more than 10 million won per visit. This contributed to a 205% increase in sales from January to April this year compared to the same period in 2023.

The outlet noted that “in order to attract foreign regular customers to department store products beyond duty-free items, Korean department stores have introduced loyalty programs exclusive to foreigners, including bonus points. Hyundai Department Store has more than 30,000 foreigners registered who can collect bonus points.”

Some luxury department stores even charge an annual membership fee if you want to shop as a VIP. According to PYMNTS, London-based department store Harrods opened an exclusive club called “The Residence” in Shanghai last year. The membership fee is 150,000 yuan ($21,000) per year, but only 250 memberships are currently offered.

Back in the US, the official Beverly Hills website has a page dedicated to the California shopping destination. Aimed at VIPs, the site features a page on the website explaining how to shop in Beverly Hills like a VIP, including booking private appointments and access to private rooms at various luxury stores, as well as special VIP perks.

Tiffany & Co., for example, has a salon on the third floor, while Louis Vuitton’s flagship store in Beverly Hills welcomes Very Important Clients (VICs) “in a living room and on an outdoor terrace where they can sip champagne while they shop.” Big-spending customers also have access to cordoned-off areas like the Burberry Penthouse and Saint Laurent VIP Suite, which offer stunning views. Neiman Marcus, meanwhile, has a special team of stylists and fashion supplies for those who are allowed into the “Bloom’s Room.”

Although requirements vary from store to store, the general consensus is that you spend a lot of money in the store. In some stores, entry is by special invitation only.

In Las Vegas, Hermès opened a 12,000-square-foot boutique last month, “complete with the first VIP salon for U.S. customers, offering them a completely private luxury shopping experience,” according to FashionNetwork.com. Hermès CEO Robert Chavez said of the VIP area: “We built it because we have a lot of high rollers and we want to take care of them and pamper them.”