Lotte Department Store under ex-Shinsegae CEO to undergo sweeping change

[Photo by Lee Chung-woo]

South Korea’s Lotte Department Store is undergoing sweeping overhaul under new leadership recruited from archrival Shinsegae Group.

New Lotte Department Store CEO Jung Joon-ho explained the bold reorganization scheme to the employees on the company’s website on Friday. Jung, who started his career at rivaling Shinsegae Department Store, was appointed to head Lotte Department Store in November last year.

A product team will be divided into divisions, and each division will be led by experts promoted inside and scouted from outside. To meet the fast-changing market demand and better appeal to customers, young leaders will be added to higher positions, Jung said.

Jung Joon-ho

Each division will be elevated to a higher status for better focus on individual organization. For example, the male sport division will be separated into three divisions of male fashion, sports and kids, all of which have higher status for better focus on each segment.

The food and beverage team will also be demerged into fresh food division and food & beverage division, and the foreign luxury brand team into three divisions.

Lotte Department plans to seat more female leaders on managerial posts as well to become more agile to customers’ demand.

The company logged a net loss of 21 billion won in the third quarter of last year.

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