Kering chairman praises Lotte Department Store's corporate culture

Kering Chairman Francois Henry Pinault / Yonhap

By Kim Jae-heun

Kering Chairman Francois Henry Pinault spoke highly of Lotte Department Store by saying he “has never seen any other global retailer with such experience (in the luxury business)” during his visit to Seoul last week, according to Lotte officials, Monday.

Kering is a French-based multinational corporation specializing in luxury goods. The company owns well-known designer brands such as Gucci, Balenciaga, Bottega Veneta and Yves Saint Laurent.

Pinault met with Lotte Department Store CEO Jung Joon-ho and shared his opinions on the local retailer's luxury business team. Pinault is said to have been amazed by the luxury team's expertise in the field during the meeting.

“I have faith in the company's drive for change (in business) led by brand experts from the chief executive officer to branch managers. I want to form a good, long-term partnership with the new Lotte Department Store and cooperate with it,” Pinault said.

After CEO Jung joined Lotte Department Store on Dec. 1, 2021, he scouted former Chanel Korea and Givenchy Korea President Lee Hyo-wan to lead the retailer's luxury business. He also formed a team with experts who had built careers at Louis Vuitton, Shinsegae and Samsung Engineering & Construction (Samsung E&C) before coming to Lotte. Samsung E&C owns Samsung Group's fashion affiliate.

After meeting with Pinault, Jung told all of his employees online that he had a great meeting with the Kering chairman and that he is optimistic about what lies ahead.

Jung recently revealed his goal of targeting Shinsegae and take away the title of being the No. 1 department store in Gangnam, Seoul, in the next three years.

Currently, Shinsegae Department Store is the top player in the tony district with annual sales of 2.4 trillion won ($19.4 billion). Lotte Department Store's Gangnam branch is far behind with just 251.2 billion won worth of sales in the same period.

Lotte said it will invest 547.6 billion won to renew its major branches including those in Sogong-dong, Jamsil and Gangnam this year.