Lotte forecasts to double e-commerce sales by 2023
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South Korean retail conglomerate Lotte is expanding its e-commerce offering with one-hour delivery grocery services, as part of a plan to double online sales by 2023.
The rush grocery delivery service is paired with upgrades to the firm’s product recommendations system in a move to attract higher volumes of online purchases in a market increasingly shifting to internet buying.
Lotte is currently targeting a doubling of last year’s e-commerce sales levels to KRW20 trillion (US$16.3 billion) by 2023.
As part of the upgrade, the firm will merge its seven online operations onto a single platform – combining convenience stores, pharmacies and department store trading with its supermarket and electronics businesses. Lotte will collect sales figures for more than 20 million SKUs under the system going forward, which will serve to improve its product recommendation algorithms.
Rush deliveries are commencing in Seoul for rollout to other areas within the territory later on.
Questions & Answers
Q.What is the specific financial goal Lotte has set for its e-commerce sales by 2023?
What is the specific financial goal Lotte has set for its e-commerce sales by 2023?
Lotte aims to double its e-commerce sales from last year's levels to reach KRW20 trillion, which is equivalent to US$16.3 billion, by 2023.
Q.Which of Lotte's existing online operations are being combined onto the new single platform?
Which of Lotte's existing online operations are being combined onto the new single platform?
The firm is merging its seven online operations, including convenience stores, pharmacies, department store trading, supermarkets, and electronics businesses, onto one platform.
Q.What is the initial rollout plan for the rush grocery delivery service mentioned in the article?
What is the initial rollout plan for the rush grocery delivery service mentioned in the article?
Rush deliveries are first commencing in Seoul. Lotte plans to roll out this service to other areas within South Korea at a later stage.
Q.How will Lotte's new system improve its product recommendation algorithms?
How will Lotte's new system improve its product recommendation algorithms?
The new system will collect sales figures for over 20 million SKUs. This extensive data collection will then serve to enhance and improve the company's product recommendation algorithms.
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