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Lotte Shopping may postpone launch of combined online mall 'Lotte ON'

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By Kim Jae-heun
  • Published KST
  • Updated KST

By Kim Jae-heun

Shin Dong-bin, Lotte Group Chairman

Lotte Group Chairman Shin Dong-bin's much-anticipated business “Lotte ON,' a combined online shopping mall, may have its launch delayed due to the coronavirus outbreak spreading nationwide. The launch was originally scheduled for March 29.

Lotte Shopping is considering setting a new date, officials said, Friday, noting that because the coronavirus outbreak has been labelled a global pandemic, it would be hard for the company to hold an opening ceremony and press conferences.

“There can be small changes made to the schedule but the digitization concept will not be altered,” a company official said. “We are considering promoting and marketing our new business online as that will match the concept.”

Even if the launch date is postponed, it will not be for too long as demand for daily necessities is still high, the official said.

Lotte Shopping has identified Lotte ON as a new growth engine in its competition with e-commerce rivals such as Coupang and eBay Korea that have been sweeping the market to date.

Chairman Shin recently said the group will concentrate investments on e-commerce while closing down 200 street stores.

Last year, Lotte Shopping unified five business divisions under one management system, while revealing its largest-scale restructuring that will shut down nearly 30 percent of its unprofitable convenience stores, department stores and supermarkets in the next few years.

Shin also reorganized the executive line-up at Lotte Shopping by apparently firing those who were against his “online-driven” business realignment. Lotte On is currently testing a trial version. When it starts its business, customers will pay a 2,900 won registration fee for up to 14 free deliveries from seven different malls operated by Lotte Shopping.

It will also give out discount coupons online while offering benefits within other Lotte Group's subsidiary businesses including Lotte Cinema and Lotte World.