24 November 2020
The Weekly
South Korea

Lotte reported a 6.8% year-on-year fall in revenue for the third quarter. The retailer’s reported revenue of KRW4.1tn (US$ 3.6bn) for the period took its year-to-date total to KRW12.2tn (US$ 10.9bn), which marks an 8.1% drop compared to 2019. Electronic sales were one high point, with increased working from home leading to an upswing in sales which resulted in a 6.5% year-on-year increase in revenue for the quarter. Likewise, revenue for Home Shopping also rose 8%. For Lotte’s domestic stores, the second wave of Covid-19 and elevated social distancing regulations in mid-August were blamed for slowing any hope of recovery, while the retailer’s international operations suffered from the ongoing pandemic. Lotte reported that department store operations in China (-4.2%), Indonesia (-38.6%) and Vietnam (-4.8%) were all down for the quarter.

Despite the downturn, however, Lotte reversed the year’s trend on operating profit, posting a 26.8% increase year-on-year for Q3, despite the year-to-date results still lagging 57.2% behind 2019’s figures. In Lotte’s department stores, Luxury Fashion (20.9%) and Home Appliances & Electronics (16.4%) both led the way with growth for the quarter, while Men’s and Sports Wear (-14.7%) and Women’s Wear (-26.5%) suffered downturns. With many shoppers stranded at home, e-commerce saw a boost for Lotte during the period. Online transaction volume was up 17.1% for Q3, reflecting a wider 9.8% year-on-year increase for 2020 so far across the Home Shopping and Cultureworks category.

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