Lotte Department Store to invest $5B with new malls on the way

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Lotte Department Store to invest $5B with new malls on the way

Published: 24 Oct. 2024, 15:03

Lotte Department Store's upgraded Timevillas shopping mall in Suwon [YONHAP]

Lotte Department Store, Korea's leading department store chain, said Thursday it will invest 7 trillion won ($5.06 billion) in shopping malls by 2030 as it seeks to diversify its business portfolios.

Lotte Department Store plans to increase the number of domestic shopping malls to 13 by 2030 from the current seven to achieve sales of 6.6 trillion won in the mall business, the company said in a statement.

The department store division of Lotte Shopping said it will fully upgrade the seven existing department stores in the domestic market and build four new ones to meet rapidly changing market demands.

Lotte expects shopping malls, such as Lotte World Mall in Jamsil, eastern Seoul, to become its mainstay business as they accommodate a variety of fashion, food and experience-focused stores, which are popular among consumers in their 20s and 30s.

Separately from domestic malls, Lotte Department Store has one overseas shopping mall in Vietnam, Lotte Mall West Lake Hanoi.
"We are planning to open more overseas shopping malls, but no detailed plans are available at the moment," a Lotte spokesperson said over the phone.

Lotte Department Store aims to earn 60 percent of its overall sales from the department store business, 30 percent from the shopping mall business and the remainder from the outlet business in 2030.

The department store division currently earns most of its sales from the department store and outlet businesses.

Lotte Shopping, an affiliate of South Korea's retail giant Lotte Group, operates the country's biggest department store chain and the third-biggest discount store chain.

Yonhap