Lotte sidesteps static sales with Indonesia storeAs local retailers struggle to find new sources of profit in the country, Lotte Mart said yesterday that it will open its 37th store in Indonesia tomorrow.
According to the large discount store operated by Lotte Group, the new Cimone store will open in the Tangerang region in western Indonesia, an industrial area with a population of about 1.87 million. The store will be located inside the Mall Cimone, a multi-complex shopping mall that includes a hotel, restaurant and bookstore. Lotte’s discount store will be on the first and second floors of the 10-story mall.
The new Lotte store in Indonesia is one of the group’s 151 overseas stores, including 107 stores in China and seven in Vietnam. Globally, there are 259 Lotte Mart stores operating in four different countries, including 108 in Korea.
“[Business for] large discount stores in Korea has been somewhat stagnant due to the ongoing sluggish economy and regulations that restrict new stores from opening,” said an official from Lotte Mart. “As for us, sales from January to May fell 2.9 percent [from last year].”
Large discount stores have been struggling with sales under the effects of government regulations meant to help mom-and-pop stores and traditional markets.
The regulations require discount stores to be closed on holidays and limit the opening of stores.
For the opening in Indonesia, Lotte Mart said that it will hold a monthlong “crazy price” event with discounts of up to 60 percent on daily necessities such as diapers and cooking oil. The store also has an international zone displaying mostly Korean products such as ramen and dried seaweed, along with items from Japan and Europe.
BY LEE EUN-JOO[email@example.com]