Kang Hee-tae, CEO of Lotte Shopping, "Focusing on Profitability Improvement"

Lotte Shopping to Hold Shareholders' Meeting on the 27th, Presenting Key Tasks for This Year

Bold Restructuring and Execution of Business Unit-Specific Operational Strategies

Strong Commitment to Profitability Improvement

[Asia Economy Reporter Lim Hye-seon] Lotte Shopping, which recorded a large net loss last year, has once again promised to improve profitability this year.

Kang Hee-tae, CEO of Lotte Shopping (photo), attended the regular shareholders' meeting on the 27th and told shareholders, "A challenging environment is expected this year," but added, "We will improve profitability and enhance shareholder value based on Lotte Shopping's core competencies: space, MD capabilities, and the largest customer data."

Last year, Lotte Shopping recorded a net loss of 853.6 billion KRW, increasing the deficit compared to the previous year. Although sales decreased by 1.1% year-on-year, operating profit fell by 28.3%. Amid continued deterioration in profitability, Lotte Shopping announced a high-intensity restructuring plan to close about 200 inefficient stores and discontinue underperforming businesses.

CEO Kang once again explained the profitability improvement plan to shareholders attending the meeting. First, to minimize operating losses and secure financial soundness as well as efficiently manage assets, Lotte Shopping will accelerate the process of closing inefficient stores within the company. Through the launch of Lotte ON next month, they plan to secure new growth engines and improve profitability. Lotte ON, Lotte Shopping’s integrated online shopping mall, will receive the company’s full capabilities. It will analyze the largest customer data among domestic retailers, totaling 39 million customers, to provide a personalized shopping space. It will also offer up to 20 million products, including those from Lotte’s retail companies.

Lotte Department Store will strengthen store-level management and pursue differentiated strategies for each store. While focusing on operating large stores, the soon-to-open Dongtan branch and Uiwang Mall will be developed into the number one shopping districts in their respective local markets. Marts and supermarkets will further strengthen their competitive edge in fresh food and establish a digital fulfillment store to introduce a store-based logistics system.

Meanwhile, CEO Kang and other Lotte Shopping executives joined Lotte Group’s share buyback movement on the 26th. Earlier, on the 20th, Shin Dong-bin, Chairman of Lotte Group, purchased 47,400 common shares of Lotte Holdings at 21,052 KRW per share, totaling approximately 1.014 billion KRW. Vice Chairman Hwang Gak-gyu and 29 other executives of Lotte Holdings also purchased treasury shares.

This content was produced with the assistance of AI translation services.