"Investing in the Future" Emart Goes All In on Securing Loyal Customers in the Second Half

Establishing Lowest Price Image with 'Gagyeok-ui Kkeut' Project
Expanding Integrated Paid Membership from Online to Offline
"Focusing on Mid- to Long-Term Structural Improvement Investment Over Short-Term Performance"

Models are introducing the 'End of Price' project products at Emart Seongsu branch.

Emart is set to solidify its loyal customer base by launching an ‘online-offline paid membership’ following its ‘Always Lowest Price’ project in the second half of this year. Although the performance in the second quarter is expected to fall short of market expectations, the company plans to focus on investments aimed at improving its business structure rather than short-term profit gains in the latter half of the year.

According to the distribution industry on the 20th, Emart plans to establish its lowest price image through the ‘End of Price’ project in the second half, while also introducing the paid membership built online to offline stores, thereby actively securing loyal customers. According to FnGuide, Emart’s consolidated earnings consensus for the second quarter of this year estimates sales of KRW 7.0265 trillion and an operating profit of KRW 1.4 billion. Some financial investment sectors predict that Emart may turn to a loss in the second quarter. Increased costs in online channels and property tax burdens were cited as reasons for the sluggish performance. Analyst Seo Jeong-yeon of Shin Young Securities evaluated, “For discount stores (Emart) in the second quarter, the same-store sales growth rate approached 4%, which is positive considering holiday differences and the endemic (periodic infectious disease) atmosphere,” but also viewed the continuous expenses in the online business as a burden. He forecasted, “Gmarket will find it difficult to break even for the full year due to rising costs and inefficiency elimination efforts.”

Emart plans to strengthen investments to enhance competitiveness and improve its business structure in the second half. The ‘End of Price’ project, personally overseen by CEO Kang Hee-seok, is a representative example. Since the 4th, Emart has been running the ‘End of Price’ project, continuously managing key products at the lowest prices. Staying true to the essence of the large-scale retail business, the company aims to instill the perception among consumers that “Emart is the cheapest whether online or offline,” aspiring to become the “first channel that comes to mind.” To this end, prices of 40 essential items such as eggs, rice, and milk are maintained at the always lowest price. From the 14th, seasonal products were added to expand the project. CEO Kang emphasized, “We will continue to expand the always lowest price management until customers firmly and deeply recognize that ‘Emart is always the cheapest.’”

Emart is also expanding its online-offline membership to secure loyal customers. The integrated paid membership of SSG.com and Gmarket, launched in May, will be extended in the second half to key offline channels within the group, including Emart, Shinsegae Department Store, and Starbucks. Shinsegae Group is operating a group-level task force (TF) to complete this work by the end of the year.

Smile Club has shown meaningful results, attracting 300,000 new members within a month of its launch. The effect of loyal customers has also been confirmed. During this period, the average spending per membership customer on SSG.com was about 90% higher than that of non-members. By targeting ‘certain customers’ with promotions, the company expects to maximize efficiency relative to costs and strengthen customer lock-in effects across both online and offline channels. A distribution industry insider said, “An integrated online-offline membership is a better point of differentiation from competitors than limiting it to online paid memberships,” and predicted, “Emart will continue to focus on investments for mid- to long-term structural improvements rather than short-term performance in the second half.”

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