"Growing While Protecting": Distribution Industry's Business Direction for the Year Seen Through the General Meeting of Shareholders

Consider Existing Business Synergies Over Aggressive Expansion
Pursue Stable Growth Amid Economic Downturn Concerns

As shareholder meetings approach in the distribution industry, each company's goals for this year are becoming clearer. This year, the distribution sector is generally moving with the goal of "continuing to do well what they have been doing well while expanding related businesses." In the face of domestic and international crises such as concerns over a global economic downturn, the policy is to pursue stable additional businesses that strengthen existing operations rather than aggressively investing in new businesses that differ from their current lines of business.

Employees are introducing vegan cosmetics at 'Be Clean,' a clean beauty select shop inside The Hyundai Seoul in Yeongdeungpo-gu, Seoul.
[Photo by Hyundai Department Store].

According to the distribution industry on the 22nd, Hyundai Department Store will address an agenda to add business purposes related to cosmetics manufacturing and wholesale/retail, as well as travel services, at the general meeting of shareholders scheduled for the 28th. This is to expand the in-house clean beauty curated shop 'B.CLEAN,' which was introduced at The Hyundai Seoul since 2021. Clean beauty refers to products that contain natural ingredients, do not conduct animal testing, and use recyclable eco-friendly packaging. Recently, as value consumption has expanded among the MZ generation (Millennials + Generation Z), the sales proportion of B.CLEAN among the 20s and 30s age group has reached 70%. Through this amendment to the articles of incorporation, Hyundai Department Store plans to directly purchase and showcase cosmetics for B.CLEAN. Hyundai Department Store also plans to add travel services as a new business and sell travel products through its online platform The Hyundai.com, offering a more diverse product lineup.

Emart plans to add liquor retail and database/online information provision as new business purposes at the shareholder meeting on the 29th. Through this, it plans to open and operate a large-scale comprehensive liquor specialty store at Starfield Hanam in April. Emart's new specialty store business is the first in seven years since the launch of No Brand in 2016. With the recent surge in demand for alcoholic beverages such as wine and whiskey, especially among the MZ generation, and the diversification of preferred types of alcohol, Emart aims to open a large-scale store specializing in liquor. It will utilize the vacant space created by the closure of the PK Market, a grocery specialty store, within Starfield Hanam.

Earlier, Lotte Mart attracted significant interest from drink enthusiasts including those in their 20s and 30s by introducing the wine specialty store 'Bottle Bunker' at its Jamsil Zeta Plex store at the end of 2021, followed by Changwon Jungang and Sangmu stores. Since its opening, the Bottle Bunker at the Zeta Plex store has seen sales grow more than sixfold compared to the previous year as of December last year. Lotte Mart also plans to open its fourth Bottle Bunker at the Lotte Mart Seoul Station store within this year.

Lotte Hi-Mart will add blockchain technology-based cryptocurrency asset development, trading, and brokerage business purposes for issuing, selling, and brokering non-fungible tokens (NFTs) at its shareholder meeting on the 27th. As the distribution industry recently expands NFT memberships using characters such as Bellygom, Lotte Hi-Mart plans to amend its articles of incorporation considering additional businesses and services utilizing Lotte Hi-Mart characters. The company explained, "We intend to add business purposes in advance with various possibilities in mind for future potential businesses."