Lotte unifies all fashion labels under single business
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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.
Questions & Answers
Q.What is the primary reason Lotte is unifying its fashion businesses?
What is the primary reason Lotte is unifying its fashion businesses?
Lotte is unifying its fashion businesses to secure competitiveness within the local fashion industry. This new approach aims to pursue efficiencies derived from centralised management, which has received investor approval.
Q.What was the previous name of Lotte GFR?
What was the previous name of Lotte GFR?
The previous name of Lotte GFR was NCF Co., which was the fashion business unit of Lotte Shopping Co. Shareholders approved the name change on Thursday as part of the unification strategy.
Q.What revenue target has the new company set for 2022?
What revenue target has the new company set for 2022?
Lotte GFR expects to generate 1 trillion won (924 million dollars) in revenue by 2022. This target will be achieved through developing new labels, importing overseas brands, and active mergers and acquisitions.
Q.What were the combined sales of the two units before this unification?
What were the combined sales of the two units before this unification?
Before the unification, the combined sales of the two units stood at approximately 200 billion won (185 million dollars). They operate around 300 stores within Lotte's existing outlets across various locations.
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