Lotte holds a sale to clear inventories

Lotte Mart, the large discount chain in Korea, is holding a “Tongkeun Sale” starting tomorrow for consumers, suppliers and farmers who are experiencing difficulties because of the current slowdown in consumption.

The event is intended to be a “win-win” for consumers, suppliers and Lotte all at the same time.

The “Tongkeun Sale” is meant to unload Lotte’s inventory of products from outstanding small- and medium-sized suppliers and farms at discounted prices.

The forced closure of large stores twice a month plus falling consumption due to a weak economy has led to piling up inventories at major retailers including Lotte, Homeplus and E-Mart.

The “Big Brand Half Price Sale,” offers famous brands at steep discounts.

Lotte also calls it a “Shared Growth Sale,” echoing the government’s call for economic growth to be shared between large conglomerates and their small or medium sized suppliers or contractors.

Lotte, which is part of a conglomerate, said it has significantly lowered its profit margins for the event to benefit suppliers and customers.

Lotte will offer a total of 25 billion won ($23.5 million) of fresh produce from farmers.

The fresh food will be on sale from tomorrow until next Wednesday and from next Thursday until Feb.3.

Lotte is selling 200,000 tons of tangerines from Seogwipo, Jeju.

Its inventory of the fruit increased by 15 to 20 percent over last year due to the fall in consumption.

It is selling a 3.5 kilogram (7.7 pound) box of tangerines for 7,900 won, 30 percent cheaper than usual.

It is introducing “Kilo Chicken,” unpopular sizes of chickens rejected by chicken franchises and selling them at 550 won per 100 grams.

It is also offering frozen mackerel, Atka mackerel, flatfish and pollack at 800 won per 100 grams.

“We came up with such a huge sales event because many of our small suppliers and farmers are struggling through the consumption slowdown,” said Choi Chun-seok, general manager of product division at Lotte Mart.

“By selling competitive products at affordable prices, we will strive to ease the burden on both suppliers and consumers.”

By Kim Jung-yoon [kjy@joongang.co.kr]