Lotte Hi-Mart Posts Operating Loss of 14.8 Billion Won in Q1...Aims to Overcome with Used Goods, Private Brands, and AI
Losses Widen by 3.7 Billion Won
Sales Fall 6.1%
Lotte Hi-Mart announced on May 7, 2026, that it recorded an operating loss of 14.8 billion won in the first quarter of this year, citing the downturn in the home appliance market and the sluggish real estate sector. The loss widened by 3.7 billion won compared to the same period last year.
During the same period, sales fell by 6.1% to 496.9 billion won, and the net loss for the period widened by 6.6 billion won to reach 20.4 billion won.
Lotte Hi-Mart explained, "The continued slump in the home appliance market and the decrease in residential moves due to the slowdown in the real estate market have had a significant impact, creating an unfavorable environment."
The company expects these unfavorable market conditions to persist throughout the first half of the year. As a result, it is pursuing brand portfolio restructuring and efforts to generate new demand.
Lotte Hi-Mart is innovating its product structure by focusing on high-end products centered on AI appliances and expanding its mid- to low-priced product lineup with overseas brands. The company is also seeking differentiation by expanding exclusive product offerings, such as Twinbird, Unox Casa, and Mirai Speaker. Additionally, the company is working to create new demand by strategically collaborating with leading companies in sectors closely related to appliance demand, such as moving services, move-in cleaning, residential facility installation, and interior renovations. These partnerships are designed to tap into demand for moving, cleaning, and partial remodeling of residential spaces.
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The company is also accelerating the advancement of its 'four core strategies': 'Lifetime Customer Care', the private brand 'PLUX', 'Store New Format', and 'Home Appliance Specialist E-Commerce'. Lotte Hi-Mart plans to increase the proportion of revenue generated by these four core strategies, which accounted for 38% of total sales last year, to approximately 45% this year.
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