Food
Lotte, the South Korean retail giant, has announced the unification of all its fashion businesses under the group’s apparel affiliate to secure competitiveness in the local fashion industry.
This new approach to pursue the efficiencies derived from centralised management received a nod of approval from the company’s investors, confirmed the retailer. Lotte Shopping Co., the operator of the conglomerate’s department store chain, said shareholders of its fashion business unit NCF Co. approved the company’s decision to change the corporate name to Lotte GFR (Lotte Global Fashion Retail) on Thursday.
“We will be able to create synergy by combining the capabilities of a retailer and a fashion company,” Seol Poong-jin, head of Lotte GFR, said.
As a result of this move, NCF, the department store’s global fashion business unit has been transferred to the new company. Founded in 2003, NCF was acquired by Lotte for 19 billion won (18 million dollars) in 2010.
The new company explained that it now expects to generate 1 trillion won (924 million dollars) in revenue by 2022 through the development of new labels, imports of renowned overseas brands and active mergers and acquisitions.
The two units’ combined sales currently stand at around 200 billion won (185 million dollars), with some 300 stores under operation at Lotte’s outlets.
