Lotte Vietnam said that it takes an average of 5-8 years from the opening day to the breakeven point, but this company has still reported an accumulated losses of VND800 billion ($35.2 million) over the last 11 years in Vietnam. The Lotte Mart in Can Tho is one of 13 locations in Vietnam Lotte Vietnam Shopping JSC started operations in Vietnam at the end of 2006 in the retail distribution sector. This is the most potential retail and distribution market in Asia due to the young labour force, high-speed urbanisation, and the development of industrial production and services. Thus Lotte Vietnam Shopping decided to invest into trade centres across big cities and provinces in the country, as well as upgraded on-going centres, invested into facilities, and improved selling policies and services while all investors are developing fast. Jeong Seong Won, chief finance officer of Lotte Vietnam Shopping, committed to long-term investment and accepted short-term losses. "In order … [Read more...] about When Lotte Vietnam to turn profit?
A Lotte Mart store in HCM City. — VNS Photo Lotte Vietnam Shopping Joint Stock Company (Lotte Mart Vietnam) has written to the Ministries of Information and Communications and Finance and the media dismissing the false reports in some newspapers that it has made losses of VND2.3 trillion (US$100.87 million) in its 11 years in Viet Nam. The reports have seriously affected its operations and consumers’ trust, it claimed. It said its financial reports audited by PwC Vietnam showed that until the end of last year it had only lost VND800 billion ($35.08 million), and its owner’s equity is now VND1,600 billion. The South Korea retailer explained that while it opened its first shopping mall in Viet Nam in 2008, it then opened 12 other malls and hypermarkets from 2009 to 2016, and each needs five to eight years to break even. Besides, since 2008 it has invested more than VND8.9 trillion in infrastructure, strategic premises and modern equipment for its13 malls and … [Read more...] about Lotte Mart rejects loss reports
Lotte Shopping Holdings Hong Kong Co. has just sold most of its outlets in China to local companies for over $505 million. Will Vietnam be the next target to cut ends for this group after ten years of consecutive losses? Lotte Mart Centre in Vung Tau city South Korean giant retailer Lotte has just announced selling one of its discount store chains to local retailer Liqun Group. This is a major step toward withdrawing from China, the world’s second-largest economy. Lotte Shopping Holdings Hong Kong Co. will sell 100 per cent of its stake in its Chinese unit that operates Lotte Mart in Shanghai and nearby areas to Liqun Group for KRW291.4 billion ($272.7 million), the Korean firm said in a regulatory filing. Liqun is expected to buy 53 outlets, with the remainder likely to be shuttered. Two weeks ago, Lotte Shopping decided to sell off 21 Lotte Mart stores in Beijing to local distributor Wumei Holdings Inc. They include 10 discount stores and 11 supermarkets in Beijing at … [Read more...] about Vietnam could be Lotte Mart’s next target for withdrawal after China
South Korea's retail giant Lotte Shopping will sell some of its Chinese stores to a local chain after suffering huge losses due to a diplomatic row with Beijing over a US missile defence system, it said on Thursday (Apr 26). The missile defence row between Seoul and Beijing has resulted in the closure of dozens of Lotte stores in China AFP/Greg Baker Lotte has been targeted by Chinese authorities after the group provided land to the South Korean government to host the high-tech US Terminal High Altitude Area Defense (THAAD) system, whose deployment infuriated Beijing. It has seen scores of its 120-plus outlets in China shut down, ostensibly over "safety issues", with angry protesters holding demonstrations against it. The Lotte crackdown was among a series of moves by Beijing seen as economic retaliation for the deployment of THAAD, including banning group tours to the South. Lotte affiliate Lotte Shopping Holdings said it will sell 87.38 per cent of its shares in its … [Read more...] about South Korea’s Lotte to sell some China stores after missile row
Lotte Mart launches its 3T membership card programme, which offers more benefits to customers. — VNS Photo Lotte Mart has launched a 3T membership card programme, which offers more benefits to customers. Holders of 3T membership cards will enjoy privileges meant for loyal customers such as accumulating points worth 1 per cent of the bill. When 3T card holders upgrade their card to VIP or VVIP, they will receive gift vouchers respectively worth VND200,000 (US$8.9) and VND500,000. VIP and VVIP card holders will also gets birthday and Tet gifts and participate in promotion programmes meant exclusively for them. To mark the launch of the 3T membership card programme, Lotte Mart is organising promotion programmes with discounts of up to 49 per cent on thousands of products. Lotte Mart opened its first store in the country in HCM City’s District 7 in 2008 and now has 13 shopping malls and hypermarkets nation-wide. — VNS … [Read more...] about Lotte Mart launches new membership card