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[이데일리TV 이혜라 기자] On the 19th, E-Daily TV’s Big Money Part 1’News in Issue’ looked at the current status and prospects of retailers that released mixed report cards by business type last year.
The previous day, consolidated sales in 2020 were 21,394.9 billion won, an increase of 17.8% year-on-year, and operating profit increased 57.4% to 237.1 billion won. Lotte Mart () also succeeded in turning to the black after six years with an annual operating profit of 19 billion won.
On the other hand, major department stores’ earnings were sluggish amid the rapid progress of hypermarkets. The operating profits of Lotte Department Store and Shinsegae Department Store all decreased by 30-45% compared to the previous year.
This is attributed to the significant decrease in the number of offline customers due to the spread of the novel coronavirus (Corona 19). The department store industry, which has a large proportion of offline sales, is hit harder than other distribution industries. There was also a decrease in demand for flagship items.
Meanwhile, the distribution industry is expected to take various survival strategies this year. Hypermarkets are expected to focus on business structure efficiency and accelerating onlineization. The convenience store industry plans to focus on differentiation, such as product collaboration.
◇ Is the performance of hypermarkets such as E-Mart more than expected?
-Restructuring, online strategy strengthening, Corona 19 effect, etc.
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Department store performance missed expectations?
-Department store Big 3 last year’s operating profit average 30~40%↓
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What are the backgrounds that differed by distribution type?
-Department stores,’big blow’ due to large proportion of offline sales
-Separation of report cards according to demand for major sales items
-60% of department stores such as’fashion and beauty’… Only 12% of food
-Larger portion of sales centered on daily necessities at hypermarkets and simple and fresh foods… Convenience store food and beverage sales 43%
-While demand for department stores’ flagship’fashion, miscellaneous goods, and beauty’ plunged, demand for food and beverage continued
What is your outlook for this year?
-Department store: Outlook for recovery
-Hypermarket: Continued improvement… Efficiency of business structure
-Convenience store (, ): Key to differentiation in the limits of external growth