Korea’s PK Market to enter the US market
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Shinsegae’s discount chain E-mart plans to enter the US by opening its premium food outlet PK Market.
While mostly high-end products will be sold at the South Korean group’s outlet, some of its low-tier private brands such as No Brand and Peacock will also be offered.
E-mart is eyeing cities with significant Asian communities, such as Los Angeles and San Francisco. It may also acquire a food factory in Portland, Oregon, for producing its Peacock products for the US.
E-mart has also joined hands with US shopping mall giant Taubman, which helped establish Starfield shopping malls in Korea.
The Korean company has been trying to diversify its global reach, particularly after closing down stores in China over the THAAD row. Its accumulated operating loss in China has reached more than KW150 billion (US$141 million) since 2013, according to industry sources. E-mart finally exited the Chinese market last month.
Meanwhile, the company plans to open its second outlet in Ho Chi Minh City in May.
Questions & Answers
Q.What kind of products will PK Market offer in the US?
What kind of products will PK Market offer in the US?
PK Market will primarily sell high-end products. However, some lower-tier private brands, specifically No Brand and Peacock, will also be available to US customers.
Q.Why is E-mart choosing cities like Los Angeles and San Francisco for its US expansion?
Why is E-mart choosing cities like Los Angeles and San Francisco for its US expansion?
E-mart is targeting these cities because they have significant Asian communities. This suggests a strategic focus on locations where their brand and product offerings may resonate well with local demographics.
Q.What is the background behind E-mart's decision to expand its global reach?
What is the background behind E-mart's decision to expand its global reach?
The company is seeking to diversify its global presence, particularly after closing all its stores in China. This closure followed significant operating losses in China, amounting to over US$141 million since 2013.
Q.Who is E-mart partnering with for its US market entry, and what is their relationship?
Who is E-mart partnering with for its US market entry, and what is their relationship?
E-mart has partnered with US shopping mall giant Taubman. Taubman previously collaborated with the Korean company to help establish the Starfield shopping malls within Korea.
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