Lotte Hi-Mart Q3 Operating Profit 686 Million KRW... 98.7% Decrease YoY (Comprehensive)

Decrease in Home Appliance Demand Due to Inflation Impact and Other Factors

[Asia Economy Reporter Lim Chun-han] Lotte Hi-Mart announced on the 3rd that its consolidated operating profit for the third quarter of this year was tentatively estimated at 686 million KRW, a 98.7% decrease compared to the same period last year.

Sales amounted to 873.86 billion KRW, down 16% from the same period last year. The net loss for the period was 370.295 billion KRW.

Lotte Hi-Mart explained that the decrease in demand for home appliances was due to a decline in real income caused by ongoing inflation and interest rate hikes, as well as the global economic downturn.

Lotte Hi-Mart plans to achieve a performance turnaround through structural improvements by focusing on selection and concentration. They will enhance offline efficiency by reducing low-efficiency small stores and strengthening large stores, and will reinforce their online shopping mall as a home appliance-centered online mall specializing in small and medium-sized appliances.

A Lotte Hi-Mart official stated, “We will nurture excellent home appliance brands and expand the operation of lifestyle product categories such as healthcare, camping, and pet appliances, as well as global brands,” adding, “We also plan to continuously develop differentiated private brand (PB) products.”