Distribution Industry's 'Shareholders Meeting Week' in the Fourth Week of March... Seeking New Growth Engines
[Asia Economy Reporter Jo In-kyung] Major retailers are adding various new businesses to their articles of incorporation at shareholder meetings scheduled for next week. This is interpreted as an effort to expand their businesses by finding new growth engines amid a slowdown in the offline retail market and rapidly changing business environments due to the impact of COVID-19.
To increase customer inflow... Adding art and electric vehicle-related businesses
According to the distribution industry on the 20th, Shinsegae Department Store will discuss an agenda to include 'exhibition, sale, brokerage, and rental of artworks and related consulting' and 'advertising business, advertising agency business, and other advertising businesses' in its business objectives at the general meeting of shareholders to be held on the 24th.
In August last year, Shinsegae Department Store renovated the 3rd floor of its Gangnam branch and opened an 'Art Space' that exhibits and sells artworks such as paintings, photographs, objets, and sculptures. The purpose is to provide customers with a special experience where they can browse artworks while shopping, with professional curators introduced to directly present or assist in purchasing the artworks.
The advertising business was newly added to change the existing analog outdoor banner advertisements to digital formats such as LED electronic displays.
Shinsegae Group affiliate Shinsegae I&C and Hyundai Department Store affiliate Hyundai Future Net will hold shareholder meetings on the 25th and add 'electric vehicle charging station-related business' to their business objectives, respectively. This strategy aims to increase customer inflow by installing electric vehicle charging stations at offline store locations in line with the expansion of electric vehicle adoption.
Lotte Group affiliate Lotte Hi-Mart also included 'car sales brokerage and agency business,' 'liquor manufacturing business,' 'electric vehicle charging business,' and 'disinfection and sterilization business' in its business objectives at the shareholder meeting held on the 19th.
Department store cultural centers also go remote
Hyundai Department Store will add 'operation of remote lifelong education facilities' to its articles of incorporation on the 25th. This is a step to actively promote the online cultural center business, which has seen increased demand since COVID-19. Hyundai Department Store already launched 'Hyundai Department Store Culture Class,' where customers can take cultural center lectures on Naver's lecture platform 'Expert,' in December last year.
GS Retail, which operates convenience store GS25, will also discuss adding 'liquor import/export business,' 'delivery agency business,' and 'insurance agency business' to its business objectives at the shareholder meeting on the same day. The company explained that the insurance agency business is intended for future insurance sales ahead of the planned merger with GS Home Shopping in the second half of the year.
An industry insider said, "As the market is rapidly changing after COVID-19, each company is carefully considering strategies to respond to this. They are adding businesses and amending articles of incorporation to strengthen existing businesses or enter new areas to create new revenue sources."
Discussion on new and reappointment of inside directors
Hyundai Department Store will propose the reappointment of Vice Chairman Chung Gyo-sun as an inside director at the shareholder meeting on the 24th. With Vice Chairman Chung, the younger brother of Chairman Chung Ji-sun, being listed again, it is expected that the group's unique 'brotherly management' will become even more solidified.
At the Emart shareholder meeting held on the same day, the appointment of Kang Seung-hyeop, Executive Director of Emart Support Headquarters, as an inside director will be discussed.
At the Lotte Holdings shareholder meeting on the 26th, Choo Kwang-sik, Head of Financial Innovation (CFO), is expected to be newly appointed to fill the vacancy left by former Vice Chairman Hwang Gak-gyu, who stepped down in August last year.
Earlier, at the Lotte Shopping shareholder meeting on the 23rd, the reappointment of CEO Kang Hee-tae and the new appointment of Kang Sung-hyun, Head of the Mart Business Division, as inside directors are on the agenda. Lotte Shopping also plans to appoint Jeon Mi-young, born in 1981 and CEO of Trend Korea Company, as an outside director to prepare strategies targeting younger consumers and to advise on digital transformation and online business.
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