Lotte Super Partners with Startup for Distribution Innovation... Nam Chang-hee: "Evolving into a Smart Grocery Specialty Store"

Important Retail Demand Forecasting
Solving Resource Management Issues through Collaboration
Business Structure Changes such as Store Optimization
Performance Rebound Expected from Next Year

Nam Chang-hee, CEO of Lotte Super, is delivering a greeting at the '2022 B. Startup Open Innovation Challenge' held on the 1st at the Busan Creative Economy Innovation Center.

[Busan=Asia Economy Reporter Jeon Jinyoung] "There are still many unresolved issues in the distribution sector, such as stockouts, quality assurance, and expiration dates, for which precise solutions have not been found. Seeing today's presentations on these long-standing concerns really opened my eyes. We will find clues to solving these problems through coexistence with technology-based startups."

Nam Changhee, CEO of Lotte Super, is partnering with startups to innovate distribution. After the ‘B.Startup Open Innovation Challenge’ held on the 1st at the Creative Economy Innovation Center in Haeundae-gu, Busan, Nam told Asia Economy, "Retail demand forecasting is extremely important," adding, "Through collaboration, we will find effective ways to solve resource management issues."

Nam emphasized, "Lotte Super is leading with the slogan ‘Let’s become a company that has value for office workers on their way home from work.’ To achieve this mission, we must transform into a smart grocery-specialized offline store with advanced demand forecasting."

He said he gained hints for this from the startup presentations this time. Nam stated, "Creating such opportunities is necessary not only for coexistence but also to frequently encounter ideas and apply them to distribution innovation."

Since his appointment in 2020, Nam has undertaken major innovations including restructuring low-profit stores, overhauling internal systems, and renewing stores. The strategy team and MD, composed of the MZ generation (Millennials + Generation Z), are collaborating on product development. With these changes and diverse idea collections, it is expected that Lotte Super’s performance turnaround will be possible starting next year. Nam explained, "We have gone through store efficiency processes such as renewing stores with high future potential." Due to business structure changes, there is anticipation for results exceeding expectations from next year.

Nam expressed that the future direction of Lotte Super depends on ‘deli’ and ‘strengthening fresh food.’ He emphasized, "Future customers using supermarkets will not have the conditions to select ingredients and prepare meals themselves. We will compete by improving the quality of fresh food and creating ready-to-eat products using them."

Meanwhile, on the same day, Lotte Super signed a business agreement with Lotte Ventures and the Busan Creative Economy Innovation Center to establish a joint business operation and mutual cooperation system. According to the agreement, they will select and support three promising startups with retail innovation technologies and services. The selected startups will collaborate with Lotte Super’s operational departments for about six months, gaining opportunities to test their technologies and services both online and offline. They will also receive various supports such as commercialization support funds (up to 10 million KRW) from the Busan Creative Economy Innovation Center and priority selection opportunities for Lotte Ventures’ startup acceleration program ‘L-Camp.’

Busan=Reporter Jeon Jinyoung jintonic@asiae.co.kr