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

Emart has achieved its highest first-quarter operating profit in 14 years, overcoming the impact of sluggish domestic consumption. Warehouse discount store Traders spearheaded the rebound with a record-breaking quarterly sales of over 1 trillion won, while the hypermarket division also contributed to 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 of this year was provisionally calculated at 178.3 billion won, up 11.9% from the same period last year. Although sales during the same period fell by 1.3% to 7.1234 trillion won, profitability marked the highest first-quarter result in 14 years, since the 190.5 billion won recorded in the first quarter of 2012.

On a standalone basis, total sales in the first quarter reached 4.7152 trillion won, up 1.9% year-on-year, and operating profit rose 9.7% to 146.3 billion won. Standalone operating profit also reached its highest first-quarter figure in eight years, since 2018.

Emart evaluated that the focus on innovation and challenge, as well as strengthening its core business competitiveness—strategies continuously emphasized by Chung Yongjin, Chairman of Shinsegae Group—are starting to show improvement in results from the first quarter. Chairman Chung visited key business sites such as Starfield Market Jukjeon and Starfield Cheongna four times during the first quarter to assess the implementation of these strategies.

By business division, Traders' performance stood out. First-quarter sales reached a record high for the period at 1.0601 trillion won, up 9.7% year-on-year, and operating profit increased by 12.4% to 47.8 billion won.

The company analyzed that strengthening product competitiveness focused on bulk and value-for-money (cost-performance ratio) items amid ongoing high inflation resonated well with customers. In fact, sales of Traders' private brand (PB) "T Standard" rose 40% year-on-year, while "T Cafe" sales grew by 24%. The number of visiting customers also increased by 3%.

The hypermarket division, which includes discount stores, posted sales of 3.0327 trillion won, a slight decrease from the same period last year, but operating profit rose 2.8% to 80.3 billion won. The company attributed the improved profitability to greater cost efficiency through integrated purchasing. Renovating existing stores also had a significant effect. Sales at the Ilsan branch, which was remodeled as a Starfield Market, increased by 75.1% compared to the same period last year; Dongtan and Gyeongsan branches also saw increases of 12.1% and 18.5%, respectively. The number of visitors to the Ilsan branch surged by 104.3%, and the proportion of long-stay customers (those staying over three hours) rose by an average of 87.1% across the three renovated branches. In addition, Emart's signature discount event "Goraeit Festa," which represents the company's price leadership, saw both sales and customer numbers rise by 3.5% and 6.0%, respectively, compared to the same period last year.

Among consolidated subsidiaries, Chosun Hotel & Resort posted net sales of 168.5 billion won, up 2.4% year-on-year, and operating profit surged 116.7% to 2.1 billion won. This was attributed to increased occupancy rates and higher average sales per customer as tourist numbers rose. SCK Company, which operates Starbucks, expanded its store count by 21 in the first quarter, leading to a 7.3% increase in net sales to 817.9 billion won, but operating profit fell 16.5% to 29.3 billion won due to higher costs.

In the e-commerce business, SSG.com saw first-quarter sales drop 9.6% year-on-year to 322.6 billion won, and operating loss continued at 21.9 billion won. However, this was a reduction of 4.6 billion won in losses compared to the previous quarter. Gmarket, which is establishing a joint venture with Aliexpress, was excluded from consolidated results following a change to the equity method in November last year, but its gross merchandise value (GMV) returned to growth for the first time in four years. The company reported that GMV and average sales per customer increased by 12% and 10% in March, and continued to rise by 10% and 12%, respectively, in April.

An Emart spokesperson said, "The innovative paradigm shift emphasized by Chairman Chung Yongjin in his New Year's address is already yielding visible results from the first quarter. Building on the growth trajectory of our existing businesses, we will accelerate future new businesses such as the construction of an AI data center."

Previously, in his New Year's address, Chairman Chung stressed, "The bold decisions made by Shinsegae Group over the past two to three years have been meticulous preparations for another phase of growth," and emphasized, "For a leap forward in 2026, we must restore the 'top nature' befitting a leading company and enact a paradigm shift that can redefine the rules of the market."