A Lotte department store. Shutterstock.
Seoul, South Korea — Despite improvements across South Korea’s key economic indices, Lotte Group’s retail unit’s profits continue to slump, The Korea Times reports. During the third quarter of its fiscal year, Lotte Shopping reported operating profit reached 28.9 billion won ($24.4 million), down 74 percent year-on-year, a recent filing revealed.
While local retail competitors, like department store giant Shinsegae, forged alliances and made acquisitions to boost digital capabilities amid the pandemic, Lotte has lagged in the country’s e-commerce race. In February, Cho Young-je, chief executive of Lotte Shopping’s e-commerce business division, resigned in response to the company’s struggles to grow its online presence.
New openings, such as a department store in Gyeonggi Province’s Dongtan and an outlet in Uiwang, have drawn crowds due to extensive marketing investments. But analysts told The Korea Times that new physical spaces are unlikely to help the company boost profits in its fourth quarter.
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