Sales management

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Hanoi, Vietnam – August 9, 2025 – Lotte Shopping is reporting mixed results for the first half of 2025, with strong overseas performance offsetting challenges in the South Korean domestic market.The company is actively restructuring its business units to improve profitability and adapt to shifting consumer behavior.

Lotte Shopping’s e-commerce division experienced a 4.8% decrease in sales, totaling ₩54.8 billion (approximately $41.8 million USD based on current exchange rates). However, the unit significantly reduced operating losses through cost optimization and increased advertising revenue. This enhancement is attributed to ongoing adjustments to the business model.

Hi-Mart,Lotte Shopping’s home appliance retailer,demonstrated a positive trend,achieving sales and operating profit growth for the second consecutive quarter despite a generally sluggish South Korean home appliance market.First-half sales rose 0.8% to ₩1.12 trillion (approximately $853 million USD), with operating losses reduced to ₩600 million (approximately $456,000 USD).

Conversely, Home Shopping saw a 6.8% decline in operating profit during the first half of the year, impacted by weaker sales of high-margin products and increased sales management expenses.Lotte Cinema, operated by Culture Works, experienced a more ample downturn, with operating losses exceeding 20% due to a lack of major domestic film releases and a broader slowdown in the film industry.

lotte Shopping’s department store division is showing signs of recovery, and the recently opened Lotte Mart ‘Grand Grag Rochori Copper Store’ in late June is anticipated to contribute to improved earnings in the second half of 2025. The new store,located in the Rochori district,represents a notable investment in the grocery-focused mart segment.

Looking ahead, Lotte Shopping plans to prioritize profitability enhancements through several key initiatives, including renovations of existing department stores, reorganization of grocery-based mart stores, expansion of private brand (PB) product offerings, and integration of logistics operations. specifically, the company is investing ₩50 billion (approximately $38 million USD) in PB advancement over the next two years, focusing on food and household goods.

Kim Won-jae, Head of Finance at Lotte Shopping, acknowledged the challenging economic conditions in South Korea, citing delayed consumer sentiment recovery. Though, he emphasized the continued strength of the company’s overseas businesses, notably in Vietnam, where Lotte Mall West Lake Hanoi is a key asset. Lotte Shopping currently operates 12 malls in vietnam,with plans to open three more by the end of 2026.

Just a journalist mintbang@mydaily.co.kr
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