Lotte Mart Vietnam sales grow to $221m

1 min readUpdated Oct 15, 2018May 18, 20164:00 AM

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With 12 stores, hypermarket chain Lotte Mart Vietnam chalked up sales of VND5 trillion (US$221.58 million) last year – 30 per cent growth year-on-year.

Foot traffic also grew 20 per cent, says CEO Hong Won Sik.

Its latest outlet opened late last month, and the South Korean company is looking at more mergers and acquisitions so it can achieve its target of 60 stores by 2020, says Hong.

He says Lotte Mart Vietnam also plans to expand to convenience stores and eCommerce.

With more than 20 subsidiaries in Vietnam, Lotte has invested more than $2 billion, and is set to double the total investment with plans to build an urban area in the east of Ho Chi Minh City.

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What this means

Lotte Mart's substantial sales growth and aggressive expansion plans in Vietnam, including a 60-store target by 2020 through M&A, demonstrate confidence in the market. This move pressures competitors like Oh!Some, which closed stores, and regional players like LivWell focusing on partnerships. Lotte's strategy to diversify into convenience stores and eCommerce, using its $2 billion investment, mirrors the broader retail trend of integrated offerings seen in other Asian markets. However, integrating numerous acquisitions successfully while simultaneously launching new formats presents operational risks. The urban development plans in Ho Chi Minh City solidify its long-term commitment. We will observe the announcement of Lotte's next acquisition target.

Maria Santos · Retail News Asia newsroom

Questions & Answers

How many Lotte Mart stores are currently operating in Vietnam?

Lotte Mart Vietnam currently operates 12 hypermarket stores. Their latest outlet opened late last month, contributing to the chain's presence across the country.

What is Lotte Mart Vietnam's strategic goal for store expansion by 2020?

Lotte Mart Vietnam aims to reach a total of 60 stores by 2020. They plan to achieve this through a combination of opening new locations and pursuing mergers and acquisitions.

Besides hypermarkets, what other retail formats does Lotte Mart Vietnam intend to enter?

Lotte Mart Vietnam plans to diversify its operations beyond hypermarkets. The company intends to expand into both convenience stores and the eCommerce sector in the future.

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