Vice Chairman Sanghyun Kim of Lotte Shopping: "Achieving 20.3 Trillion Won in Sales and 1.3 Trillion Won in Operating Profit by 2030"

CEO IR Day Held on the 15th
Global Expansion and Retail Tech Business Growth
"Accelerating Corporate Value Enhancement"

On September 15, Lotte Shopping announced that it held the '2025 CEO IR DAY' at Signiel Seoul in Jamsil, Seoul, where it presented its 'Transformation 2.0' acceleration strategy for the continued enhancement of corporate value.

Sanghyun Kim, Executive Vice President and General Manager of Lotte Distribution Group. Photo by Lotte Shopping

The event was attended by about 100 participants, including representatives from major domestic asset management firms, investors, securities analysts, and key banking officials, making it the largest event of its kind to date. From Lotte Shopping, Vice Chairman Sanghyun Kim, Junho Jung, CEO of Lotte Department Store, Sunghyun Kang, CEO of Lotte Mart and Lotte Super, Ikjin Park, CEO of Lotte eCommerce, and Changhee Nam, CEO of Lotte Himart, attended and engaged with investors.

Lotte Shopping's 'CEO IR DAY' was first launched in September 2023 and marks its third year in 2025. Each year, Vice Chairman Sanghyun Kim has personally presented Lotte Shopping's strategies and shareholder value enhancement plans to investors. At this year's event, Kim unveiled strategies to secure new growth engines to achieve 20.3 trillion won in sales and 1.3 trillion won in operating profit by 2030, plans to strengthen fundamental competitiveness, improve financial soundness, and enhance shareholder value.

As part of its strategy to secure new growth engines, Lotte Shopping emphasized global business expansion and the discovery and cultivation of new businesses centered on retail technology. In the first half of this year, overseas operations accounted for 13% of consolidated sales and 18% of operating profit, continuing a steady growth trend. Accordingly, Lotte Shopping plans to open two to three new premium mixed-use complexes, modeled after the successful 'Lotte Mall Westlake Hanoi,' in major Vietnamese cities by 2030.

Lotte Mart aims to strengthen its market dominance in Southeast Asia by opening new stores in various formats and expanding 'Lotte Mart Express' shop-in-shop locations. In addition, Lotte Shopping plans to accelerate global business growth by exporting its advanced distribution systems and merchandise planning (MD) capabilities to local shopping facilities in Southeast Asia through consulting and other new businesses, with the goal of achieving 3 trillion won in overseas sales by 2030.

The company also revealed its strategy for discovering and nurturing new retail technology businesses based on artificial intelligence (AI). By realizing an 'Agentic Enterprise' where AI leads work in shopping, merchandising, operations, and business support, Lotte Shopping aims to improve efficiency and productivity. To this end, the company is seeking synergies to strengthen AI leadership in the retail sector through partnerships with specialized companies such as Naver. The Zeta Busan Customer Fulfillment Center (CFC), which will begin operations next year, will leverage cutting-edge automation and personalized solutions to secure a differentiated advantage in the online fresh food market, driving both business expansion and profit maximization.

The company will also strengthen the fundamental competitiveness of each business unit, including rebuilding market leadership in key department store trade areas, transitioning to grocery specialty stores, and focusing on profitability-driven growth in e-commerce and subsidiaries. Department stores, such as the main store, Jamsil store, and Busan main store, have achieved an average annual transaction growth of 8.4% over the past four years. Lotte Shopping plans to form 'Lotte Towns' in key trade areas to secure differentiated competitiveness, and maximize operational efficiency in shopping malls and outlets through offline store convergence among business divisions.

Sanghyun Kim, Vice Chairman and CEO of Lotte Shopping, is presenting Lotte Shopping's strategy to about 100 attendees at the 'CEO IR DAY' held on the 15th at Signiel Seoul in Jamsil, Seoul. Photo by Lotte Shopping

Lotte Mart and Lotte Super will continue to transition into grocery specialty stores based on the 'Grand Grocery' model, focusing on food products and enhancing product competitiveness through greater variety, cost advantages, and the development of signature items. Lotte eCommerce aims to achieve annual operating profit turnaround by 2026 by strengthening vertical commerce capabilities, focusing on its role as Lotte Group's online gateway, and operating with a profitability-centered approach. Lotte Himart will accelerate its performance turnaround and growth through new businesses such as safety care services and home appliance subscription services. Home shopping and Cultureworks will also restructure their business models with a focus on profitability and secure new growth engines that can create synergies with existing businesses.

The company also highlighted its plans to enhance corporate value through a stable financial structure and strengthened internal capabilities. Following an asset revaluation at the end of last year, Lotte Shopping saw significant improvements in key financial indicators. The debt ratio dropped by 61 percentage points to 129%, while the dependence on borrowings decreased by 11 percentage points to 38%. In addition, the company secured stable liquidity through ample deposits and credit lines. With these improved financial indicators, Lotte Shopping plans to maximize corporate value through changes in HR systems, building high-performance organizations, and improving productivity and efficiency through AI transformation.

Last year, Lotte Shopping paid dividends exceeding the minimum amount of 3,500 won per share, and in July, it became the first in the retail industry to implement an interim dividend, demonstrating its active commitment to shareholder returns. The company is also actively communicating its medium- and long-term goals and strategies to shareholders through various IR activities, including CEO IR DAY, CEO IR LETTER, and overseas corporate briefings. Starting September 16, Lotte Shopping will hold corporate briefings in Hong Kong and Singapore to further expand communication with overseas investors.

Vice Chairman Kim stated, "We will successfully execute Lotte Shopping's unique Transformation 2.0 acceleration strategy to solidify our position as customers' first choice for shopping," adding, "We will do our utmost to become a trusted Lotte Shopping not only for our customers, but also for our shareholders, investors, and partners."

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