The Korea Times close
National
  • Politics
  • Diplomacy
  • Defense
  • Labor & Environment
  • Law & Crime
  • Health & Welfare
  • Embassy
  • Seoul & Provinces
  • Education
  • Foreign Communities
  • Obituaries
  • Multicultural Youth Award
Biz & Tech
  • Auto
  • IT
  • Game
  • Manufacturing
  • Retail & Food
  • Energy
  • Construction
  • Airlines
Finance
  • Policies
  • Economy
  • Markets
  • Banks
  • Non-banks
  • Economic Essay Contest
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
Lifestyle
  • Arts
  • Books
  • Travel & Cuisine
  • Trend
  • Fashion
  • Around Town
  • Fortune Telling
Entertainment
  • K-pop
  • K-dramas & Shows
  • Movies
  • Music
  • Performances
  • Asia Model Festival
Sports
  • Football
  • Golf
  • Baseball
  • Other Sports
World
  • Asia Pacific
  • Americas
  • Europe & Africa
  • SCMP
Video
  • On the Spot
  • Feature
  • News
Photos
  • Photo News
  • Darkroom
Community
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
Biz & Tech
  • Auto
  • IT
  • Game
  • Manufacturing
  • Retail & Food
  • Energy
  • Construction
  • Airlines
Thu, January 28, 2021 | 17:46
Retail & Food
Lotte Shopping to sell 121 stores due to virus impact
Posted : 2020-05-24 17:10
Updated : 2020-05-24 17:26
Mail
Print Preview
Font Size Up
Font Size Down
The entrance of Lotte Department Store in central Seoul. Korea Times file
The entrance of Lotte Department Store in central Seoul. Korea Times file

By Kim Hyun-bin

Lotte Shopping will sell 121 stores within this year as its retail businesses are taking the brunt of the COVID-19 pandemic, the company announced Sunday.

The country's leading department store operator was scheduled to offload nearly 30 percent or 200 of the 700 stores ― including department stores, supermarkets and large discount stores ― within the next three to five years to strengthen its e-commerce business as more consumers prefer to buy online.

However, the pandemic has sped up the restructuring process as the company recorded a devastating loss in the first quarter this year.

"We have decided to swiftly sell off less profitable assets to enhance our financial situation as it has been heavily affected by the COVID-19 outbreak," a Lotte Shopping official said in a conference call after releasing its first-quarter earnings results on May 14.

The company plans to close 121 stores, including five department stores, 16 discount stores, 75 supermarkets and 25 LOHB's outlets, by the end of the year.

The move comes after the company suffered a 43.33 billion won ($35 million) net loss in the first quarter this year, a huge drop in profitability after a 109.17 billion won net profit in the same period last year. The slump was mainly due to the coronavirus pandemic as fewer people visited offline stores.

Lotte Shopping claims there will be no forced layoffs from the shutdown, with employees being transferred to other stores. However, industry watchers believe lay-offs will be inevitable as 17 percent of the stores are set to close this year.

Despite the losses in the offline sector, Lotte Shopping hopes to rebound via its online businesses. The company launched an online shopping website called "Lotte On" last month which integrated Lotte's eight affiliates including its Department Store, the electronics unit Himart, Lotte Home Shopping and Lotte Duty Free.


Emailhyunbin@koreatimes.co.kr Article ListMore articles by this reporter









 
WooriBank
 
  • SsangYong faces receivership as Mahindra-HAAH deal collapses
  • 3 separate COVID-19 tests required for international students coming to Korea
  • COVID-19 survivors suffering from aftereffects
  • Are Kakao boss' children being prepared for future succession?
  • Ultra-dovish Fed gives room to Bank of Korea
  • Questions rise over timing of Moon-Xi phone conversation
  • Budget airline industry faces major changes with new players, merger
  • S&P highlights Hyundai, Samsung, LG, SK betting on futuristic cars
  • AmorePacific aims for rebound through collaboration with Off-White
  • Childbirths hit record low in November; deaths rise to highest in 37 years
  • Actress and model Song Yu-jung dies at 26 Actress and model Song Yu-jung dies at 26
  • More K-pop singers contribute to animation soundtracks More K-pop singers contribute to animation soundtracks
  • K-pop groups prepare for returns after members finish mandatory military service K-pop groups prepare for returns after members finish mandatory military service
  • TXT's first Japanese album 'STILL DREAMING' dominates Oricon Chart TXT's first Japanese album 'STILL DREAMING' dominates Oricon Chart
  • AFI Awards: 'Minari' among the Best Films of 2020 AFI Awards: 'Minari' among the Best Films of 2020
DARKROOM
  • Biden takes office as 46th president

    Biden takes office as 46th president

  • Biden-Harris inauguration is taking shape

    Biden-Harris inauguration is taking shape

  • Second Trump impeachment

    Second Trump impeachment

  • Pro-Trump rioters breach the US Capitol

    Pro-Trump rioters breach the US Capitol

  • Our children deserve better (Part 2)

    Our children deserve better (Part 2)

WooriBank
  • About Korea Times
  • CEO Message
  • Times History
  • Content Sales
  • Media Kit
  • Contact Us
  • Location
  • Privacy Statement
  • Terms of Service
  • Mobile Service
  • RSS Service
  • 고충처리인
  • hankookilbo
  • Dongwha Group
  • Code of Ethics
Copyright