"Thanks to Luxury Revenge Spending" ... Department Store Big 3 Show Strong Q2 Performance

Increased Food Demand Boosts Emart Sales and Operating Profit

[Asia Economy Reporter Jo In-kyung] Despite the prolonged COVID-19 pandemic, consumer sentiment has revived, leading to a simultaneous increase in the second-quarter performance of major department stores. In large supermarkets, increased demand in the food sector drove sales.

According to the distribution industry on the 12th, the second-quarter sales of the 'Big 3' department stores?Lotte, Hyundai, and Shinsegae?all increased compared to the same period last year. The growth was largely due to increased demand for luxury goods driven by revenge consumption and a rise in sales of fashion products, which had been sluggish last year.

Lotte Department Store's second-quarter sales amounted to 721 billion KRW, an 8.2% increase compared to the same period last year. Operating profit rose by 40.9% to 62 billion KRW.

Hyundai Department Store recorded second-quarter sales of 543.8 billion KRW, a 28.1% increase year-on-year, and operating profit of 65.3 billion KRW, up 148.9%. The increase in both sales and operating profit was attributed to the impact of new stores such as The Hyundai Seoul and the premium outlet Space One, as well as the recovery in sales of fashion product categories.

Shinsegae Department Store, including Gwangju Shinsegae, posted sales of 496.9 billion KRW, a 15% increase compared to the same period last year. Notably, operating profit reached 67 billion KRW, up 180.3%, marking the highest ever for the second quarter.

Large supermarkets also saw increased sales, benefiting from the rise in demand for home-cooked meals since COVID-19.

Emart's second-quarter sales were 3.894 trillion KRW, and operating profit was 5.8 billion KRW, representing increases of 9.6% and 20.8 billion KRW respectively compared to the same period last year. The strengthened grocery strategy led to a 15.7% increase in food sales in the second quarter, which was a key factor. Operating profit also turned positive in the second quarter for the first time in three years since 2018.

On the other hand, Lotte Mart's sales decreased by 4.8% to 1.424 trillion KRW, resulting in an operating loss of 26 billion KRW. Although food sales increased, the overall sales declined due to the impact of overseas stores such as those in Vietnam, according to the mart's explanation.

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