Lotte Mart Opens New Store Cheonho Branch After 6 Years... Takes First Step in Gangdong-gu

First New Store in Six Years Since Lotte Mall Suji Branch
Near Cheonho Station in Gangdong-gu... Market Growth Expected with New Redevelopment Move-ins
Fostering Next-Generation Urban Grocery-Focused Store
Non-Food Section Operated with Focus on Value for Money

Lotte Mart is opening a new store for the first time in six years.

Lotte Mart, operated by Lotte Shopping, announced on the 16th that it will open the Cheonho branch on the basement first floor of the Gangdong Millennial Joongheung S-Class apartment complex near Cheonho Station in Gangdong-gu, Seoul. The Cheonho branch spans 1,374 pyeong (4,538㎡). This is Lotte Mart's first new store opening since August 30, 2019, when it opened the Lotte Mall Suji branch, marking a gap of over six years.

Lotte Mart Opens New Store Cheonho Branch After 6 Years... Takes First Step in Gangdong-gu

Lotte Mart Cheonho Branch fruit display. Provided by Lotte Mart

This is Lotte Mart's first store in Gangdong-gu. Gangdong-gu already has three large marts operating, making it a highly competitive commercial area. Nevertheless, Lotte Mart explains that within a 2 km radius of the Cheonho branch, about 170,000 households reside, providing a rich hinterland, and since last year, redevelopment and reconstruction areas have begun occupancy, indicating high market growth potential.

Lotte Mart is positioning the Cheonho branch as an urban practical grocery store. This decision considers that the nearby commercial areas of Cheonho-dong and Seongnae-dong have a high proportion of people in their 30s and single-person households. The store size is 1,374 pyeong, about half the size of a typical large mart's sales area, but it is composed solely of directly operated stores without tenant (rental) spaces. Moreover, 80% of the store is filled with grocery products such as fresh and ready-to-eat foods and specialty stores. The non-food section is streamlined with cost-effective private brand (PB) products and highly preferred brand products by customers.

Food-Centered Operation... Establishing a 27m 'Long Deli Road'

Lotte Mart Cheonho Branch Daily Meal Solution Display Stand. Provided by Lotte Mart

First, the store introduces a food specialty section, considered a core competitive advantage of large marts. At the store entrance, a 27-meter-long 'Long Deli Road' displays Lotte Mart's ready-to-eat products, offering about 50% more deli items than typical stores. The 'Yorihada World Buffet' corner, themed on small portions and cost-effectiveness, offers over 60 items including garlic chicken steak, spicy fried shrimp (Kkanpyo Saewoo), and nasi goreng, covering Western, Chinese, and Asian cuisines, priced between 3,000 and 4,000 KRW.

The Long Deli Road also features a salad zone. This specialty section offers a selection of more than 30 types of salads. Dressings and cut fruits that accompany the salads are displayed nearby to enhance shopping convenience.

In the processed food corner, the store introduces 'Daily Meal Solution,' a frozen convenience food specialty section. This section offers more than 70% more frozen convenience food products compared to regular stores. In particular, frozen meal kits are more than three times as abundant as in typical stores. The seasoning section features a 'Global Product Zone,' gathering seasonings and sauces from around the world in one place. The 'Wine & Liquor Zone' expands the selection of wines and whiskeys by more than 10% compared to regular stores and newly includes a non-alcoholic wine zone.

Being located in the city, the store also focuses on practical grocery shopping. In the vegetable section, based on annual sales data, vegetables with high customer purchase frequency are selected and sold at industry-lowest prices in the 'Kkeutjang Product Zone.' Product planners (MDs) participate directly in auctions and use various methods to enhance price competitiveness, selling these products about 20% cheaper than regular items.

The non-food section sells uniform-price private brand (PB) products through the 'One Good Shop-in-Shop' specialty zone. PB products make up 60% of the total product lineup here. Prices are set at uniform increments of 900 KRW, including 4,900 KRW, 7,900 KRW, 9,900 KRW, and 12,900 KRW. Additionally, the store operates a home smart appliance specialty zone featuring CCTV and smart hubs, and strengthens convenience-improving product groups such as capsule detergents, reflecting the characteristics of the commercial area.

Kang Sung-hyun, CEO of Lotte Mart & Super, said, "The Cheonho branch is the first store Lotte Mart has opened in six years and is a next-generation grocery specialty store that faithfully realizes customer value based on Lotte Mart's core competitive strength in grocery specialty content. Along with the integration of the mart and super divisions and the transition to a grocery specialty store, it will become the 'Number One Grocery Market' that achieves both quantitative and qualitative growth through expanding the scope of marts and supers."

Meanwhile, as part of restructuring and improving its business structure, Lotte Mart has been closing some inefficient stores. The number of stores, which reached 125 in 2019, has decreased to 110 as of last month. Since 2021, about 30 stores have undergone renovations.