'Corporate Value Enhancement Plan' Including Shareholder Return Policy
Strengthening Core Business Competitiveness and Promoting New Growth Engines
Targeting 20 Trillion KRW in Sales and 1 Trillion KRW in Operating Profit by 2030
Lotte Shopping has announced a value-up disclosure, including the introduction of a minimum dividend policy of 3,500 KRW per share. Value-up disclosure is a system in which listed companies voluntarily commit to plans that can enhance corporate value and guarantee shareholder benefits, and Lotte Shopping is the first in the distribution industry to do so.
On the 11th, Lotte Shopping disclosed its corporate value enhancement (value-up) plan for the fiscal years 2024 through 2030 via the electronic disclosure system. The value-up disclosure includes a newly strengthened shareholder return policy and mid- to long-term business plans aimed at achieving the goal of becoming "the customer's first shopping destination."
Lotte Shopping will increase the shareholder return ratio from the current level of about 30% to 35%, and for the first time since listing, implement a minimum dividend policy of 3,500 KRW per share. Additionally, the company plans to first confirm the dividend amount and then decide the dividend record date to enhance investors' ability to predict dividends. It is also considering splitting the currently once-a-year dividend payment into multiple payments.
Through this dividend policy, Lotte Shopping aims to increase shareholder value and has set a target of achieving KRW 20.3 trillion in sales and KRW 1.3 trillion in operating profit by 2030. Among these, it plans to raise overseas business sales to KRW 3 trillion. The previously disclosed mid- to long-term targets were revised to KRW 15.2 trillion in sales and KRW 800 billion in operating profit by 2026, considering the slow domestic economic recovery and population decline.
To achieve these mid- to long-term goals, Lotte Shopping plans to focus on new growth engine businesses. First, it will reorganize its organizational structure to expand its Southeast Asian business. The International Headquarters (iHQ) organization, which will serve as the hub for Southeast Asian operations, will be established to strategically promote business expansion. The iHQ role will be taken by Singapore Holdings, which currently owns major Southeast Asian subsidiaries, and will oversee Southeast Asian operations based on expertise in the local business environment. Furthermore, through the full-scale launch of the Retail Media Network (RMN) business, new revenue streams will be created, and AI technologies specialized for distribution, such as real-time price comparison and automatic ordering systems, will be expanded.
Additionally, Lotte Shopping plans to strengthen market leadership by enhancing commercial district competitiveness through additional store renewals centered on department stores and expansion of shopping mall businesses. Furthermore, it will expand the grocery business to generate synergy between Lotte Mart and the supermarket business units. Based on the experience of converting Lotte Mart Eunpyeong Branch into 'Grand Grocery,' it plans to accelerate the transition to fresh food specialty stores. Lotte Mart also plans to integrate and operate the e-grocery business it is promoting with the UK-based Ocado to establish a dominant competitive edge in the domestic grocery market.
In e-commerce, Lotte Shopping will strengthen its position as a vertical specialty mall in fashion, beauty, children’s products, and luxury goods. The strategy is to enhance competitiveness by focusing on product planning (MD) and personalized marketing leveraging group capabilities, and to realize sustainable growth through solid management. Subsidiaries such as Hi-Mart, home shopping, and Culture Works, which significantly improved profitability in the first half of this year, will continue to implement various strategies for profitability turnaround. Kim Sang-hyun, Vice Chairman and CEO of Lotte Shopping, said, "We will pursue the value-up strategy to achieve mid- to long-term performance improvement goals and increase shareholder value through stable dividend payments and shareholder returns. We will do our best to become Lotte Shopping that grows together with shareholders."
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