Strengthening Core Business Pays Off for Emart Under Chung Yongjin... Highest First-Quarter Operating Profit in 14 Years

Up 11.9% Year-on-Year, Operating Profit Reaches 178.3 Billion Won
Traders Leads Profitability with Record Quarterly Sales of 1 Trillion Won
Spatial Innovation at Discount Stores Drives Growth of Renovated Branches
Chairman Chung’s “Paradigm Shift” Strategy Proves Effective

Emart has overcome the impact of the domestic market downturn and, for the first quarter, achieved its highest operating profit in 14 years. The warehouse-style discount store Traders led the rebound by posting record-high quarterly sales of over 1 trillion won, while the hypermarket business also boosted profitability through spatial innovation and discount benefits.

On May 13, Emart announced in a regulatory filing that its consolidated operating profit for the first quarter reached 178.3 billion won, up 11.9% from the same period last year. Although sales during the same period decreased by 1.3% to 7.1234 trillion won, Emart still recorded its highest first-quarter profitability since 2012, when it posted 190.5 billion won in operating profit.

Emart Headquarters. Photo by Jo Yongjun

On a separate basis, first-quarter total sales increased by 1.9% year-on-year to 4.7152 trillion won, and operating profit rose by 9.7% to 146.3 billion won. This is also the highest first-quarter operating profit in eight years since 2018 on a separate basis.

By business segment, Traders showed the most notable growth. First-quarter sales rose 9.7% year-on-year to 1.0601 trillion won, marking the highest quarterly figure ever, and operating profit increased by 12.4% to 47.8 billion won.

The company explained that, amid persistently high inflation, its strategy to strengthen product competitiveness focused on bulk and value-for-money items resonated well with customers. In fact, sales of Traders’ private brand “T Standard” grew by 40% compared to the same period last year, and sales of “T Cafe” increased by 24%. The number of visitors also rose by 3%.

Sales at hypermarkets—the discount store division—stood at 3.0327 trillion won, a slight decrease from the same period last year, but operating profit rose by 2.8% to 80.3 billion won. The company attributed the improved profitability to enhanced cost efficiency through integrated purchasing. Spatial innovation, such as renovations of existing stores, also played a key role. Sales at the Ilsan branch, which was renovated and rebranded as Starfield Market, increased by 75.1% compared to the same period last year. Dongtan and Gyeongsan branches also recorded year-on-year sales increases of 12.1% and 18.5%, respectively. The number of visitors to the Ilsan branch rose by 104.3%, and the proportion of customers staying for more than three hours increased by an average of 87.1% across the three renovated stores. Additionally, Emart’s signature discount event, “Goraeit Festa,” which represents its price leadership, saw both sales and visitor numbers rise by 3.5% and 6.0%, respectively, compared to the same period last year.

Traders Suwon Hwaseo Branch T Cafe. Provided by E-Mart

Among consolidated subsidiaries, Chosun Hotel & Resort posted net sales of 168.5 billion won, up 2.4% year-on-year, and operating profit surged by 116.7% to 2.1 billion won. This was the result of increased tourist numbers driving up occupancy rates and average spending per guest. SCK Company, which operates Starbucks, expanded its footprint by adding 21 stores in the first quarter. As a result, net sales grew by 7.3% year-on-year to 817.9 billion won, but operating profit fell by 16.5% to 29.3 billion won due to rising costs.

The e-commerce business SSG.com saw first-quarter sales decrease by 9.6% year-on-year to 322.6 billion won, with an operating loss of 21.9 billion won, continuing to post a deficit. However, the loss narrowed by 4.6 billion won compared to the previous quarter. Gmarket, which is pursuing a joint venture with Aliexpress, was excluded from consolidated results following equity method conversion in November last year, but its gross merchandise volume (GMV) returned to growth for the first time in four years. According to the company, both GMV and the average spend per customer rose by 12% and 10%, respectively, in March, and by 10% and 12%, respectively, in April, demonstrating continued growth.

An Emart spokesperson stated, “The innovative paradigm shift emphasized by Chairman Chung Yongjin in his New Year’s address is already yielding tangible results from the first quarter,” and added, “Based on the growth of our core businesses, we will accelerate new future initiatives such as building an AI data center.”

Earlier, in his New Year’s address, Chairman Chung stated, “The bold decisions made by Shinsegae Group over the past two to three years were a meticulous preparation for renewed growth. For Emart to soar in 2026, it is essential to restore the ‘top instincts’ of a leading company and establish new rules for the market through a paradigm shift.”

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