E-Mart achieved the largest sales of ’22 trillion won’ since its founding last year

E-Mart posted the largest sales ever since its 27th anniversary last year. It easily surpassed the target’first 20 trillion won in history’.

Due to the reinforced social distancing caused by Corona 19, the time to stay at home increased and the demand for daily necessities for food increased sharply, while refraining from eating out. In particular, it is evaluated that the synergy effect of online and offline synergy between e-commerce SSG.com and E-Mart, which is being developed by Shinsegae Vice Chairman Jeong Yong-jin across the company, was visible.

On the 9th, E-Mart announced that last year’s consolidated sales rose 15.6% from the previous year (19,62.9 billion won) to 22,33 trillion won. This is the first time since the establishment of E-Mart, its sales have exceeded 20 trillion won. Operating profit was 2372 billion won, up 57.4% from the previous year (150.7 billion won).

It has declined since 2018, but turned to an increase in two years. As the number of visitors to hypermarkets declined due to the spread of Corona 19, E-Mart also completely overturned the original prospect that sales would inevitably fall. E-Mart’s monthly sales increased positively compared to the same period last year, excluding February, which was the initial period of the corona19 spread.

E-Mart, a major business, rebounded. Separately, E-Mart sales, including E-Mart stores, warehouse-type mart traders, and private brand (PB) no-brands, increased 8.1% from the previous year to KRW 14,2138 billion.

Sales at E-Mart stores (discounted stores) increased 1.4% based on existing stores, showing positive growth in three years. When Homeplus and Lotte Mart restructured insolvent stores, E-Mart reinforced its grocery store at 9 stores including Wolgye.

The growth of its subsidiary, SSG.com, directly drove up E-Mart’s earnings. SSG.com, which lacks distribution centers compared to the rapidly increasing volume, uses E-Mart stores as a PP (Picking & Packing) center. It is a method of ordering at SSG.com and shipping at E-Mart’s offline stores. It is a strategy aimed at synergy between online and offline.

Warehouse-type discount store traders who enjoyed the specialty of the Corona 19 crisis saw a whopping 23.9% increase in total sales. This is because as the Corona 19 prolonged, there was a lot of demand to reduce the number of shopping and buy daily necessities in large quantities. E-Mart plans to open new traders stores this year, starting with Yeonsan Branch in Busan. Net profit was found to have improved due to the inflow of gains from the sale of the Magok site.

With the rapid growth of the online market following Corona 19, subsidiaries specialized in non-face-to-face consumption also performed well. SSG.com sales increased sharply, and convenience store E-Mart 24 also recorded solid results by narrowing the deficit.

According to the industry, SSG.com’s sales grew by about 50% year-on-year last year, and it is known that it made little operating loss in the fourth quarter of last year. Sup.com reduced its operating loss last year to KRW 19.7 billion in the first quarter, KRW 13.7 billion in the second quarter, and KRW 3.1 billion in the third quarter. The main growth factor is preoccupation in the online food market. Last year, SSG.com’s food transaction amounted to about 2 trillion won, and it ranked first with 8% of the domestic food online market. It is thanks to transplanting the know-how of E-Mart, the No. 1 large mart in Korea.

An official from E-Mart said, “Consolidated subsidiaries such as Shinsegae Group’s integrated online mall, Shup.com and T-commerce, Shinsegae TV Shopping, also saw a steady growth in performance.”