Traders Surpasses 1 Trillion Won in Quarterly Sales for the First Time... Emart's Q3 Operating Profit Up 35.5%

Emart Q3 Operating Profit Reaches 151.4 Billion Won
Revenue Slightly Down to 7.4008 Trillion Won
Chuseok Timing Difference... Profitability Recovers
Traders Drives Performance Improvement

Emart successfully defended its profitability in the third quarter, overcoming unfavorable conditions such as a later Chuseok holiday compared to last year and the exclusion of government consumer coupon usage at its stores, which impacted consumer demand.

On November 11, Emart announced in a regulatory filing that its consolidated operating profit for the third quarter of this year was provisionally tallied at 151.4 billion won, a 35.5% increase from the same period last year. Revenue reached 7.4008 trillion won, down 1.4% year-on-year. Net profit surged 194.4% to 310.3 billion won. On a separate basis, third-quarter gross sales were 4.5939 trillion won and operating profit was 113.5 billion won, down 1.7% and 7.6%, respectively.

Emart Headquarters. Photo by Jo Yongjun

Traders Surpasses 1 Trillion Won in Quarterly Gross Sales for the First Time

The warehouse-style discount store Traders showed a remarkable rebound. Traders’ third-quarter gross sales rose 3.6% year-on-year to 1.0004 trillion won, surpassing the 1 trillion won mark in a single quarter for the first time. During the same period, operating profit increased by 11.6% to 39.5 billion won.

The newly opened Magok branch (February) and Guwol branch (September) both turned a profit in their first month, driving the upward trend. The company attributed its strengthened core competitiveness to a strategy focused on differentiated large-volume and value-for-money products, combined with global sourcing capabilities, particularly through its private brand “T Standard.” In fact, T Standard’s third-quarter sales rose 25% year-on-year.

The third-quarter gross sales of hypermarket discount stores fell 3.4% year-on-year to 2.9707 trillion won, and operating profit dropped 20.9% to 54.8 billion won. The company explained that this was due to a timing difference, as last year’s Chuseok holiday was in mid-September (the third quarter), while this year it was in early October (the fourth quarter), resulting in a decline in sales during the third quarter. However, sales at existing stores in October increased 16% compared to the same period last year.

Meanwhile, the corporate supermarket (SSM) Everyday recorded gross sales of 367.8 billion won, a 0.6% decrease, but operating profit surged 61.9% to 10.2 billion won. The number of Everyday stores also increased from 23 at the end of last year to 35 in the third quarter of this year.

Subsidiaries Show Mixed Results

The business performance of major subsidiaries was mixed. The third-quarter net sales of online platforms SSG.com and Gmarket were 318.9 billion won and 187.1 billion won, down 18.3% and 17.1% year-on-year, respectively, with operating losses widening to 42.2 billion won and 24.4 billion won. SCK Company, which operates Starbucks, saw sales rise 2.9% to 810.5 billion won during this period, but operating profit decreased by 9.6% to 60 billion won.

The offline subsidiary Shinsegae Property posted third-quarter sales of 114.6 billion won and operating profit of 39.5 billion won, thanks to robust operations centered on Starfield and participation in various development projects. These figures represent increases of 46.8% and 740.4%, respectively, from the same period last year. Chosun Hotel & Resort also saw sales climb 12.7% to 210.8 billion won and operating profit rise 13.4% to 22 billion won, driven by higher occupancy rates and improved average spending per guest.

Emart Goraeit Festa. Photo by Emart

'Comprehensive Innovation in Price, Product, and Space'... Strengthening Core Business Competitiveness

Emart is building a virtuous cycle of cost improvement through integrated purchasing and reinvestment in pricing, even amid high inflation. Notably, it has led price innovation across the industry with large-scale discount events such as the “Goraeit Festa” and the “Price Shock Declaration,” which keeps key daily necessities at consistently lowest prices. The company has also strengthened direct overseas sourcing to enhance both product competitiveness and price advantage. In fact, the Traders Guwol branch, which opened in September, introduced more than 230 global products, including over 90 new overseas items.

Additionally, Emart has driven customer visits and sales growth through space innovation and renovation, particularly at Starfield Market. Following the Starfield Market renewal, as of the end of September, the Ilsan branch saw sales increase by 66% and customer numbers by 110% year-on-year. The Dongtan and Gyeongsan branches also posted sales growth of 18% and 21%, respectively.

An Emart official stated, “Our third-quarter results show that our core business competitiveness is being strengthened, regardless of external variables. We will continue to enhance tangible benefits for customers, focusing on the three pillars of price, product, and space, and maintain a stable growth trajectory based on our core business strength.”

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