Lotte Mart Enters Singapore with 'Express' Store Featuring PB Products

Entry as a 'Shop-in-Shop' Inside FairPrice Stores
Sales of Over 100 PB Products Including 'Oneuljoeun' and 'Yorihada'
"Singapore to Be Developed as a Hub for PB Exports to Southeast Asia"

On May 15, Lotte Mart announced that it will open its first Korean-style grocery specialty store, 'Lotte Mart EXPRESS No. 1' (with a floor area of 45 pyeong), inside the FairPrice Extra VivoCity, a major discount store in Singapore. FairPrice is operated by NTUC FairPrice, the largest retail company in Singapore.

Exterior view of the 'Lotte Mart EXPRESS' store located inside FairPrice Xtra VivoCity in Singapore. Provided by Lotte Mart.

The opening of Lotte Mart EXPRESS No. 1 is the result of a partnership agreement signed nine months ago, in August of last year, between Lotte Mart and NTUC FairPrice for the supply and sale of private brand (PB) products in Singapore. This marks Lotte Mart’s expansion into a new Southeast Asian country for the first time in 17 years, following its overseas operations in Indonesia and Vietnam since 2008. A ceremony will also be held to celebrate Lotte Mart’s first entry into Singapore. The event will be attended by Kang Sung-hyun, CEO of Lotte Mart and Lotte Super; Vipul Chawla, CEO of NTUC FairPrice Group; and Shin Yooyeol, Head of Future Growth at Lotte Holdings.

Since entering Indonesia and Vietnam in 2008, Lotte Mart has expanded its business to a total of 63 stores (48 in Indonesia and 15 in Vietnam), successfully establishing itself in the Southeast Asian market. By introducing grocery specialty stores that have proven successful in Korea to local markets, Lotte Mart achieved a 3.0% increase in sales and a 19.6% increase in operating profit last year. In the first quarter of this year, sales rose by 9.5% and operating profit by 20.6%, continuing its growth trend. Through its entry into Singapore, known as the hub of Southeast Asia, Lotte Mart aims to further strengthen its competitiveness in overseas markets.

Lotte Mart is entering the Singapore market with a new format called 'Lotte Mart EXPRESS,' a K-grocery specialty store focusing on PB products and ready-to-eat meals. Unlike its previous overseas expansion strategy of directly opening and operating stores, this format will operate as a 'shop-in-shop' within FairPrice’s large discount store. Through synergy with a leading local retailer, Lotte Mart expects to secure a stable revenue structure and effectively increase brand awareness of 'Lotte.'

Lotte Mart’s PB products will also be sold at about 100 FairPrice stores across Singapore. Lotte Mart currently operates the PB brands 'Yorihada' and 'Oneuljoeun.' As global recognition of K-food continues to rise, Lotte Mart is exporting more than 500 PB products to 13 countries, including Vietnam, Mongolia, and Hong Kong, and is receiving a positive response.

Customers are shopping at 'Lotte Mart EXPRESS' located inside FairPrice Extra VivoCity in Singapore. Provided by Lotte Mart.

Under the slogan 'Gateway to the Taste of Korea,' Lotte Mart EXPRESS features a variety of food-focused spaces. The ready-to-eat food specialty section, 'Yorihada Kitchen,' is designed with an open kitchen and dining area, offering a range of K-food such as tteokbokki, gimbap, and dakgangjeong. Using recipes developed by the Lotte Mart Food Innovation Center (FIC), staffed by professional chefs, the store faithfully recreates the authentic taste and quality of Korean cuisine. 'Yorihada Kitchen' is currently operating in five Lotte Mart stores in Vietnam (Westlake, Hanoi Center, Nam Saigon, Dong Nai, and Vinh) and two stores in Indonesia (Gandaria City and Kuningan). Since its introduction, sales of ready-to-eat foods have more than doubled, demonstrating strong local popularity.

Lotte Mart also operates the 'Lotte Zone,' which brings together popular PB products and signature items from Lotte Wellfood and Lotte Chilsung. The store offers more than 100 popular Lotte Mart PB food items, ranging from traditional Korean snacks to low-sugar products tailored to wellness trends. It also features a variety of globally popular products such as Pepero, Choco Pie, and Chilsung Cider. In addition, there is a 'ramen station' where customers can cook and enjoy K-ramen on the spot, as well as a section offering popular products from leading Korean food companies such as CJ and Ottogi.

Kang Sung-hyun, CEO of Lotte Mart and Lotte Super, stated, "Lotte Mart EXPRESS is a store that embodies the synergy between Lotte’s leading retail and food companies, serving as a space to deliver the taste and culture of Korea. Based on Lotte Mart’s overseas business know-how accumulated over the past 20 years, we plan to successfully establish K-food in the Singapore market and develop it as a hub for PB exports to Southeast Asia in the future."

Meanwhile, FairPrice is the largest retail company in Singapore, generating annual sales of approximately 5 trillion won. Since its establishment in 1973, FairPrice has operated differentiated offline stores across Singapore, including nine large discount stores, 100 supermarkets, and 170 convenience stores, offering a range of formats such as hypermarkets, premium supermarkets, supermarkets, and convenience stores tailored to each commercial district.