"AI Innovation and Overseas Business Expansion"... Kim Sang-hyun, Lotte Shopping Vice Chairman, Drives Both Sales and Profit Growth

New Year Video Message via Internal Bulletin Board

Kim Sang-hyun, Vice Chairman and General Representative of Lotte Distribution Group, stated that generative artificial intelligence (AI) is bringing changes to the distribution industry and emphasized retail tech innovation through AI utilization this year. Along with this, he presented a blueprint to achieve simultaneous growth in sales and profits by accelerating overseas business.

On the 27th, Vice Chairman Kim posted a New Year's video message on the company bulletin board, sharing the results of the structural improvement efforts pursued since his inauguration in 2022 and presenting this year's growth strategy.

First, regarding the structural improvement efforts, he highlighted the achievement of 2 trillion won in sales at the department store headquarters and mentioned the integration of marts and supermarkets, as well as the successful opening of Lotte Mall Hanoi. "While 'Transformation 1.0,' which began in 2022, focused on improving profitability, from this year onward, we will accelerate 'Transformation 2.0' to achieve simultaneous growth in sales and profits," he said. Vice Chairman Kim's remarks indicate a shift from focusing solely on profitability improvement to expanding into external growth this year.

Vice Chairman Kim identified retail tech such as generative AI and the expansion of overseas business as areas for external growth. He said, "The growth of the global retail market utilizing generative AI is accelerating," adding, "Lotte established the 'LaiLAC' (Lotte ai Lab Alliances & Creators) center last September to prepare for AI utilization." He continued, "Vietnam and Indonesia have higher GDP growth rates than South Korea, so growth is expected," emphasizing, "We plan to consider new businesses." Lotte is contemplating opening additional shopping malls in Vietnam. In the United States, they are collaborating with Lotte Trading's Americas branch to expand exports of private brand (PB) products.

Vice Chairman Kim stressed that to achieve such growth, it is necessary to create a 'High Performance Organization,' and noted that Chairman Shin Dong-bin also ordered 'strengthening execution capabilities' at the first half-year executive meeting.

The plan is to build future capabilities through synergy enhancement via a one-team culture, acceleration of job expertise, support for the growth of female leaders to strengthen diversity, and elimination of authoritarian leadership. Along with this, he urged that Lotte should always be the first brand customers think of when considering shopping, provide the best value and highest quality, and offer positive experiences both online and offline.

He further emphasized the need to support employees to provide the best service to customers and to strive for good management from an ESG (environmental, social, and governance) perspective.

Vice Chairman Kim said, "More competition and difficulties are expected this year as well, but there are always many opportunities within them," and added, "We will strive to make Lotte the number one shopping destination."

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