Lotte Shopping gearing up store-exit plan
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South Korean retail group Lotte Shopping will sell off 121 stores this year in an attempt to recover from the impact of the coronavirus pandemic on sales.
The company says it will close five department stores, 16 discount stores, 75 supermarkets and 25 physical stores linked to its online mall LOHB within this year.
The move accelerates Lotte’s existing plans to sell roughly 200 stores to refocus on e-commerce.
A spokesperson from the firm indicated Lotte would move to quickly shake off its less-profitable assets in the interests of improving its financial health. Lotte Shopping’s first-quarter results, at a loss of US$35 million, represented a massive drop from the $88.2 million profit it achieved during the same period last year.
Lotte Shopping has around 700 department stores, discount stores, and supermarkets.
Questions & Answers
Q.How many stores is Lotte Shopping planning to sell this year?
How many stores is Lotte Shopping planning to sell this year?
Lotte Shopping intends to sell 121 stores this year. This includes five department stores, 16 discount stores, 75 supermarkets, and 25 physical stores connected to its LOHB online mall.
Q.What is the primary reason for Lotte Shopping's decision to sell off stores?
What is the primary reason for Lotte Shopping's decision to sell off stores?
The company is selling stores to recover from the coronavirus pandemic's impact on sales. It is also accelerating existing plans to refocus on e-commerce and improve its financial health.
Q.What were Lotte Shopping's financial results for the first quarter?
What were Lotte Shopping's financial results for the first quarter?
Lotte Shopping reported a US$35 million loss in the first quarter of this year. This is a significant drop compared to the US$88.2 million profit achieved in the same period last year.
Q.How many stores does Lotte Shopping currently operate in total?
How many stores does Lotte Shopping currently operate in total?
The company operates approximately 700 stores across its department stores, discount stores, and supermarkets. The current plan will reduce this number significantly.