Lotte Shopping "Partnering with Ocado, aiming for 30% market share... Hanoi Lotte Mall to become a landmark"

29th General Meeting "Accelerate Store Renewal and Integration Strategy"
Vice Chairman Kim Sang-hyun "Reviewing Business Conditions for Gwangju Complex Mall"

"Based on the partnership with the UK’s Ocado, we will become the leader in the domestic online grocery market. Our mid-to-long-term goal is to secure approximately 30% market share by 2032."

Kim Sang-hyun, General Head of Lotte Distribution HQ and CEO (Vice Chairman) of Lotte Shopping, stated at the shareholders' meeting held on the 29th at Lotte Mart Max Yeongdeungpo in Yeongdeungpo-gu, Seoul, "Starting with the opening of the first Customer Fulfillment Center (CFC) in Busan in 2025, we will build a nationwide network of six logistics centers to provide the freshest, most convenient, and most accurate top-quality online grocery shopping experience to the entire nation."

Kim Sang-hyun, General Representative of Lotte Distribution Group HQ and Vice Chairman of Lotte Shopping, is speaking at the shareholders' meeting held on the 29th at Lotte Mart Max Yeongdeungpo branch in Yeongdeungpo-gu, Seoul.
[Photo by Lotte Shopping].

Lotte Shopping plans to continue strong innovation this year following last year, proactively responding to the changing environment to reestablish itself as "Korea’s No. 1 distribution hub." The department store division aims to continue strong marketing and MD reinforcement this year as well. Through major store renovations and the introduction of new content, they plan to offer customers a better shopping experience. In August, they will open the premium luxury shopping mall "Lotte Mall West Lake Hanoi" in Hanoi, Vietnam, aspiring to create a landmark representing Vietnam by combining Lotte Group’s capabilities.

Lotte Mart and Lotte Super plan to fully implement an integrated strategy this year after establishing a single CEO system at the end of last year. They will build a foundation for integrated sourcing such as unifying product codes and strengthen competitiveness with new home meal replacement (HMR) brand "Yorihada" and comprehensive master private brand (PB) "Oneul Joeun." The e-commerce division’s top priority is shifting to a profitability-centered business, accelerating the transition to vertical commerce reflecting the core preferences of Lotte On’s customers. This year, they are preparing to open a kids vertical mall.

Regarding the complex shopping mall in Gwangju Metropolitan City, business conditions and development plans are under discussion. Vice Chairman Kim said, "We are considering opening a complex shopping mall," adding, "We are establishing plans to improve business feasibility, including reducing rent. We also plan to negotiate business conditions and development plans." He further stated, "We will strengthen competitiveness and manage profitability at existing stores, prioritizing miniaturization of stores as we proceed."

Vice Chairman Kim emphasized, "Since April last year, Lotte Shopping has established a new vision as 'the customer’s first shopping destination' to re-leap as the No. 1 distribution hub, innovating in three aspects: organizational culture, business system improvement, and business structure transformation." He explained that to quickly respond to the rapidly changing distribution environment, they are enhancing organizational capabilities and improving work methods. They are promoting various core projects based on products, stores, and services that combine competitiveness and expertise to strengthen distribution competitiveness and improve business structure. For long-term future growth, they are also innovating business structures by leveraging synergies between business divisions." As a result of efforts to improve business structure and restore core competitiveness, last year they recorded sales of 15.476 trillion KRW and operating profit of 386.2 billion KRW.

Meanwhile, at the shareholders' meeting, the reappointment of Kang Sung-hyun as inside director of Lotte Shopping and the reappointments of Jeon Mi-young and Kim Do-sung as outside directors were approved as originally proposed. The director remuneration limit (11 billion KRW) was also passed.

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