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Chairman Shin Dong-bin |
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South Korea’s Lotte Shopping Co. plans to rebuild its business foundation this year with a renewed focus on improving profitability.
At its annual shareholders meeting on Monday, the company emphasized that new ventures in its department store, grocery, and e-commerce segments would be key to regaining competitiveness.
During the meeting, Lotte Group Chairman Shin Dong-bin was appointed as a registered board director of Lotte Shopping for the first time in five years and was named CEO by the board.
The company outlined six core strategies to drive growth. These include reestablishing market leadership in key department store zones, becoming the country’s top grocery retailer, and shifting its e-commerce strategy.
Vice Chairman Kim Sang-hyun, head of Lotte’s retail division, said the company aims to expand its overseas business by establishing a local subsidiary in Singapore as domestic growth slows and consumer spending weakens.
Lotte Shopping has set a target of reaching 20.3 trillion won ($13.83 billion) in revenue and 1.3 trillion won in operating profit by 2030. Last year, the company recorded 13.98 trillion won in revenue and 473.1 billion won in operating profit.
In 2024, Lotte Shopping carried out cost-saving measures including scaling down inefficient operations and cutting marketing expenses.
Investment bank Morgan Stanley noted in a February report that while expectations for offline retailers remain low amid sluggish consumer demand, Lotte Shopping is well-positioned to improve its performance through a focus on profitability.
The bank added that in today’s uncertain economic environment, cost reduction is crucial, and Lotte Shopping appears on track to restore its earnings.
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