Lotte Hi-Mart Returns to Profit Despite Sluggish Appliance Market
Creatrip Team
a month ago
Lotte Hi-Mart posted operating profit of 9.6 billion KRW last year, a 7.9 billion KRW increase from the prior year, while annual total sales rose 0.8% to 2.8453 trillion KRW. Excluding one-off items, operating profit improved by 29.7 billion KRW, marking the retailer’s first operating surplus in four years and its first annual sales increase (a “plus turn”) in five years. The company credited growth to its service business—’Hi-Mart Ansim Care’ (home appliance insurance, A/S, cleaning, and home interior services)—which saw customer use rise ~23% and revenue ~39%. Private brand PLUX (launched April) performed strongly, with 33 of 55 new items ranking in the top three for their categories and 22 reaching number one, lifting PB sales 8%. Offline “experiential” store renewals (including MOTOPIA) drove a 39% sales lift at 22 remodeled stores, while e-commerce monthly unique visitors grew 40% and online sales rose 8% through an OMNI (online-offline integrated) consultation strategy using ~3,000 appliance specialists. Lotte Hi-Mart plans to further advance its four strategic pillars—services, products, stores, and e-commerce—to sustain quality growth.
