Emart's net profit up 62 percent in 2020
Emart’s net profit rose 62 percent in 2020 on strong sales even at some of its physical stores.
Revenue rose 15.6 percent to 22 trillion won ($19.7 billion).
Emart operates e-commerce platform SSG.com, Emart, Josun Hotels & Resorts and big-box warehouse chain Traders.
Emart discount stores reported 1.4 percent on year growth in revenue, up from minus 3.4 percent in the previous year. Traders continued to report a double digit growth. Its on-year revenue growth last year was 23.9 percent, compared to 22.4 percent from a year earlier.
The company said growth was driven by its “strengthened customer-centered management despite an uncertain external environment caused by the Covid-19.”
Redesigning nine branches of Emart discount stores, including those in Wolgye-dong, northern Seoul, and Sindorim, western Seoul, to focus on groceries have also helped sales.
Emart did not yet report its fourth quarter earnings, but analyst Jeong So-yeon from Kyobo Securities projected Emart’s fourth quarter revenue at 5.93 trillion won, up 22.8 percent from a year earlier on strong growth from Traders and SSG.com.
Jeong added indoor dining due to Covid-19 has increased demand for grocery shopping, helping SSG.com sales.
“Groceries and food account for 47 percent of products sold on SSG.com.” Jeong added, “Based on logistics competitiveness as a retailer, the company is projected to outperform online groceries market and lead the growth.”
SSG.com can deliver around 120,000 packages per day. The capacity is expected to grow three-fold by 2025.
Lotte Shopping on Monday reported a 670.94-billion-won net loss last year, 17.8 percent lower than a year earlier on revenue that declined 8.8 percent to 16.08 trillion won.
BY JIN MIN-JI [email@example.com]