16% increase last year… Operating profit is 57%↑
Store sales positive growth in 3 years
E-Mart posted the highest sales ever last year. Amid the spread of Corona 19, it has grown with competitiveness such as fresh foods and online malls. It is analyzed that while rivals Lotte Mart and Homeplus are reducing their stores, the strategy of aggressive offline store expansion through renewals was also effective.
E-Mart announced on the 9th that its consolidated sales last year increased 15.6% from the previous year (19,62.9 billion won) to 22.33 trillion won. This is the first time it has exceeded 20 trillion won in sales, the highest in 27 years since its founding. Operating profit was 2372 billion won, up 57.4% from the previous year (150.7 billion won). Operating profit, which had declined from 2018 due to online shopping malls, turned to an increase after two years.
E-Mart’s performance, which is the’home’, rebounded. E-Mart sales, including E-Mart stores, warehouse-type mart traders, and no-brands (PB), increased 8.1% year-on-year to 14,2138 billion won. Operating profit increased by 17.5% to 295 billion won. E-Mart’s operating profit from 6384 billion won in 2017 dropped to 251.1 billion won in 2019 and then rebounded.
E-Mart’s existing store sales increased 1.4%, a positive growth in three years. It is the result of attracting consumers by renewing nine stores including Wolgye branch last year. With the spread of Corona 19, meetings of five or more people were banned, and the demand for home meals also increased. Traders’ total sales also increased 23.9% due to Corona 19.
As the non-face-to-face consumption trend spreads, the performance of subsidiaries such as Shinsegae Group’s integrated online mall, Shup.com, also improved significantly. An official from E-Mart explained, “The connected subsidiaries such as Sup.com and T-commerce Shinsegae TV Shopping have also grown evenly.”
According to the distribution industry, it is known that Sup.com made little operating loss in the fourth quarter of last year. This is because the online fresh food market has expanded. Last year, the operating loss of Sup.com gradually decreased to 19.7 billion won in the first quarter, 13.7 billion won in the second quarter and 3.1 billion won in the third quarter. Sales increased by 35-40% each quarter.
Reporter Noh Yoo-jeong [email protected]
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