- Company name
- Lotte Shopping Co., Ltd. – Lotte Mart
- Noh Byeong-yong
- Date of
- April 1, 1984
- Major business
- Discount store
- (Sincheon-dong, Lotte Castle Gold) 6~7 Floor,
269, Olympic-ro, Songpa-gu, Seoul, Korea
Korea’s leading discount store operated by distribution giant Lotte
Since opening our first discount branch in 1998, Lotte Mart has been growing through aggressive
expansion while providing the highest quality products and differentiated services. We currently
operate more than 60 stores nationwide, and have started tackling the overseas market from
2008 by penetrating the markets of China, Indonesia, and Vietnam.
In 2003, we introduced a PB brand Wiselect, which uses systemic product design and meticulous
marketing to provide the customers with the same quality products offered at lower prices. Our
other efforts include the radical MPB ‘Lotterang,’ which reinforces the competitiveness of PB
brands while executing win-win cooperation with smaller businesses.
We have also signed a license contract with the world’s largest toy chain Toys”R”Us to open the
first store in 2007, and have been steadily expanding ever since.
To realize our goal of acquiring the title of ‘No. 1 Retailer in Asia,’ we will steadily increase the
number of Korean franchise stores, while penetrating new overseas markets in Asia.
Lotte Mart is engaged in the most dynamic overseas business operations in Korea’s distribution sector, as we penetrate into markets in China, Indonesia, and Vietnam. In particular, our acquisitions of China-based Makro in December 2007, Indonesia-based Makro in October 2008, and China-based TIMES in October 2009 have brought under our control 106 stores in three countries (82 in China, 22 in Indonesia, 2 in Vietnam), securing our standing as a truly global distributor chain.
Size-wise, we own the largest overseas operations unit in Korea’s distribution industry, while adding our overseas/domestic branches makes us rank top in terms of franchise counts. We are proud to say we own an extensive distribution network to grow into a global company, as our overseas branches exceed our domestic franchises. We were able to realize this remarkable result in a mere 3 years since our overseas ambitions kicked off in 2006, and we will continue to expedite our entry into VRICs (Vietnam, Russia, India, China) countries to acquire the title of Asia’s No. 1 retailer.
- Lotte Mart made its first steps into China’s market when we acquired the Netherlands-origin China Makro company in December 2007, inheriting its 8 stores (6 in Beijing, 2 in Tianjin). In October 2009, we acquired another China-based supermarket chain TIMES, which raised the number of our Chinese branches to 82. With the latest merger, we rose to rank 14 in China’s supermarket chains, enabling us to compete head-on with global retailers in the Chinese distribution market.
Our Chinese franchises have expanded from the former Northeast region to include the central regions as well, while most of the stores are located in mid-sized cities with exceptionally high urban development and growth potentials. Lotte Mart will continue to exert dedicated efforts in the Chinese market, to expand further inland and south in order to become one of the top 10 supermarket chains in China within the next 3 years.
- Lotte Mart became the first Korean retailer to enter the Indonesian market, as we acquired 19 Indonesian Makro chain stores on October 2008. Since then, we have been using direct investments to open new stores in Jakarta’s Gandria City and other locations, raising our current store count to 22.
Indonesia’s retail market has been posting an average of 10% growth every year since 2002, while supermarket chains are soaring at a 30% rate. Meanwhile, Indonesia’s population of 240 million also makes it the fourth most crowded country in the world. Others have already entered this high-potential market – such as multinational Carrefour, Hong Kong’s Dairy Farm, and local chain Matahari – but the market share of supermarket chains is still on the low end, which hints at considerably high growth potentials. As the first Korean retail chain to penetrate the market, Lotte Mart will make use of meticulous localization strategies reflecting the local characteristics of the population and differentiated strategies to advance into the market.
- Lotte Mart also entered the Vietnamese market in December 2008 when we opened our first branch, the South Saigon store. To differentiate ourselves from local supermarkets, we have added a 3,200 pyeong culture/convenience facility consisting of a movie theater, cultural center, and bowling alley, which expanded the store area to 6,200 pyeong – the largest in Vietnam. Our South Saigon store boasts a multi-complex blend of shopping and cultural activities unseen in local rivals, as the three-story building houses the store and cultural centers from the basement to second floor, while hosting the Lotte Cinema, family restaurants, bowling alleys, pool rooms, and other convenience facilities on the third floor. These exceptional facilities have established our South Saigon store as Vietnam’s top cultural shopping center.
In July 2010, we opened our second branch in Vietnam, the Puto branch, thus opening a multi-branch chain system in Vietnam as well.
Products from local firms constitute 95% of total sales at the Puto branch, while the global product zones display an array of well-known products from Korea, China, and Japan. We plan to strengthen our grip in the Vietnamese market by opening 30 additional stores in Ho Chi Minh City, Hanoi, and ther major cities in Vietnam within the next ten years.
Fresh food, processed food, miscellaneous items, electronics, cultural items, apparels/accessories