More stagnant E-mart store to be closed
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Shinsegae Group’s discount chain E-mart has decided to shut several more stagnant stores this year to improve the company’s efficiency.
Shinsegae says it has also sold its Deoki-dong branch in Ilsan, Gyeonggi Province. The outlet had initially been a Walmart store in 1996, but became an E-mart in 2006 after Shinsegae acquired the US-based discount chain’s Korean affiliate.
“We realised we needed to reform our stores for continuous growth,” says an E-mart official, “so we began closing down our stores that showed sluggish sales.”
The company sold its store in Hakseong in Ulsan, the store in Bupyeong in Incheon and the store in Siji in Daegu last year. It also sold land in Hanam and Pyeongtaek, Gyeonggi Province.
Following the closure of an SSG Food Market Mokdong store in Seoul in January, E-mart plans to shut down the Bupyeong and Siji branches in the first half of this year. The restructuring is regarded as a move to offset the retailer’s sluggish growth rate over the past few years.
E-mart posted KW566.9 billion (US$524.3 million) in operating profits last year, down 0.3 per cent from the previous year.
Disposing of its stores showing losses, the company is considering opening a couple of new stores this year, as reported.
E-mart left the Chinese market last year because of lingering losses in the world’s most populous country. After launching E-mart store there in 1997, at one time it had 30 outlets. However, the Chinese affiliate posted KW21.6 billion in losses in 2016, and its accumulated deficit between 2013 and 2016 reached KW150 billion.
Meanwhile, E-mart will begin building its second store in Ho Chi Minh City in May. The company is using its Vietnamese affiliate as a base for its expansion in other Southeast Asian countries, such as Cambodia, Laos and Myanmar.
Questions & Answers
Q.What was the operating profit for E-mart last year and how did it compare to the previous year?
What was the operating profit for E-mart last year and how did it compare to the previous year?
E-mart recorded KW566.9 billion in operating profits last year. This figure represented a 0.3 per cent decrease compared to their operating profits from the year before.
Q.Which specific stores are scheduled to be closed by E-mart in the first half of this year?
Which specific stores are scheduled to be closed by E-mart in the first half of this year?
Following the closure of an SSG Food Market Mokdong store in January, E-mart plans to shut down its Bupyeong branch in Incheon and its Siji branch in Daegu during the first half of this year.
Q.When did E-mart first enter the Chinese market, and what was the extent of its presence there?
When did E-mart first enter the Chinese market, and what was the extent of its presence there?
E-mart launched its first store in China in 1997. At its peak, the company operated 30 outlets within the country before eventually leaving the market last year.
Q.How is E-mart planning to utilise its Vietnamese operations for future expansion?
How is E-mart planning to utilise its Vietnamese operations for future expansion?
E-mart will begin constructing its second store in Ho Chi Minh City in May. The company intends to use its Vietnamese affiliate as a foundation for expanding into other Southeast Asian countries.