'900 Billion Won Annual Deficit' Specialty Store Mass Dance Emart... Men's Fashion Edit Shop Also Says 'Goodbye'

Men's Fashion Edit Shop 'Show & Tell
Launched in August 2018, Closing All Stores by End of March After 1.5 Years
Likely Second Withdrawal Case Following Pierrot Shopping
Aftermath of Emart's Poor Performance Last Year

[Asia Economy Reporter Cha Min-young] The underperforming specialty store brands that burdened E-Mart with an annual deficit of 90 billion KRW are disappearing into history. Following the specialty store Pierrot Shopping, E-Mart, which recorded two consecutive quarterly losses for the first time since its founding last year, has decided to close the men's fashion select shop 'Show & Tell.' While E-Mart explained this as part of a store rationalization effort, it has been confirmed that all offline stores are being closed and inventory is being cleared.

According to industry sources on the 22nd, E-Mart has decided to close seven offline stores of Show & Tell's 'Show & Tell Mens' over about a month starting this month. Beginning with Shinsegae Department Store Gangnam branch on the 27th of this month, all three stores including Starfield Wirye, Goyang, Hanam branches, and Shinsegae Premium Outlets Paju, Yeoju, and Busan Gijang branches will be closed by the end of March. All seven stores have announced specific closing dates and are holding farewell sales to clear remaining inventory. A Show & Tell store official said, "We have decided to close all seven stores and are currently clearing remaining inventory through farewell sales."

Show & Tell is a men's fashion select shop launched by E-Mart in August 2018 with the concept of a "playground for men." It sold men's clothing, accessories, figures, and other items at affordable prices, earning a reputation as a cost-effective brand with high quality and low prices. Show & Tell also introduced its own private brand (PB) products under the same name. Show & Tell PB products are sold both in offline stores and on SSG.com, the online mall affiliated with Shinsegae.

The decision to close offline stores just a year and a half after the brand's launch was driven by fundamental concerns about the business structure. Initially, E-Mart planned to expand specialty stores as part of its new growth engines. It developed product lines suited to the specialty store concept and diversified store openings and brands. However, efficiency became an issue. Brands that failed to firmly establish themselves in the market became the main cause of poor performance. E-Mart's consolidated operating profit last year was 150.7 billion KRW, down 67.4% from the previous year. Sales increased by 11.8% to 19.0629 trillion KRW, but net profit fell 53.2% to 223.8 billion KRW. Notably, it recorded two quarterly losses in the second and fourth quarters for the first time in its history.

Particular attention is being paid to the fact that the specialty store business incurred an annual loss of about 90 billion KRW, prompting a judgment that efficiency improvements are urgent. While specialty stores with strong customer attraction, such as the ultra-low-price store No Brand and experiential electronics store Electromart, continue to expand, less profitable brands like the health & beauty (H&B) store Boots are undergoing structural adjustments at the business unit level. However, even for brands with growth potential, detailed profitability analysis is conducted by region, commercial district, and store, and underperforming stores are decisively closed. The company explained that the operating loss in the fourth quarter included one-time costs of 50 billion KRW for specialty store inventory disposal and a 10 billion KRW promotional campaign called "National Allowance."

The first target of the specialty store restructuring was Pierrot Shopping. Opened in 2018 with the concept of a "fun and crazy" general store, Pierrot Shopping was considered Vice Chairman Chung Yong-jin's ambitious project, reflecting his desire for various content experiments. At one point, it recorded an annual cumulative visitor count of 4.2 million, seemingly achieving success. However, high rental costs in major commercial districts and sluggish sales prevented profitability. Consequently, seven stores nationwide are being sequentially closed; the Myeongdong store closed in December last year, and the Doota Mall store is scheduled to close on the 8th of next month, currently holding brand sales.

Industry insiders expect E-Mart to undertake further restructuring of underperforming specialty stores. Currently, E-Mart operates specialty store brands including No Brand, Electromart, Molly's Pet Shop, Boots, Sports Big Ten, Sentense, Toy Kingdom, Maris Baby Circle, PK Market, and Life Container.

Regarding this, an E-Mart official stated, "The direction for the Show & Tell brand is currently under internal discussion, and no decision has been made to withdraw the business." He added, "It is true that stores in premium outlets are being prioritized for closure, but no decisions have been made regarding other channels such as department stores or Starfield."

A fashion industry insider commented, "It is true that all fashion brands, including select shops, require continuous investment for more than four to five years to firmly establish themselves in the market. I thought Show & Tell had successfully captured a demand gap by offering cost-effective looks for men, so it is quite regrettable."