Lotte Shopping, a distribution unit under South Korean conglomerate Lotte, recorded a revenue of KRW98 billion ($77.5 million) from its operations in Vietnam in the first quarter of this year.
Lotte Shopping now operates in six sectors at home, namely department stores, hypermarkets & supermarkets, e-commerce, home shopping, culturework (cinema), and hi-mart (electronics). For its overseas markets, the South Korean firm runs department stores and hypermarkets in China, Indonesia, and Vietnam.
In Vietnam, the firm posted a revenue of KRW5 billion ($3.96 million) from the department store segment, up 8.4% year-on-year. The figure accounted for 0.7% of Lotte Shopping’s total revenue from the segment of KRW796 billion ($629.8 million). Operating profit fell 24.4% to KRW1 billion ($791,200) and accounted for 19% of the total.
As revenue grew but operating profit fell, Lotte Shopping attributed the development to increased rental fees in Vietnam.
In the hypermarket sector, Lotte Shopping’s revenue in Vietnam rose 12.6% year-on-year to KRW93 billion ($73.6 million), making up 6.5% of the firm’s total figure of KRW1,447 billion ($1.14 billion). The operating profit in Vietnam jumped 27% to KRW8 billion ($6.33 million), or 8.5% of the total.
Lotte Shopping noted that the number of department stores in Vietnam remained at two as of the end of 2022 and would rise to three in 2023, with an expected opening of one unit in the third quarter of this year. In addition, the number of hypermarkets in Vietnam went up from 14 in 2021 to 15 in 2022, with one more expected in the third quarter of this year.
On its Facebook page, Lotte Mall West Lake Hanoi hinted a soft opening on July 28 and a grand opening on September 22.
Lotte Shopping highlighted the cultureworks (cinema) sector recorded a revenue of KRW4.2 billion ($3.3 million) in Vietnam in 2022, a strong improvement of KRW4.1 billion year-on-year.
Regarding global performance in the first quarter of this year, Lotte Shopping posted an operating profit of KRW112.5 billion ($89 million), up 63.7% year-on-year, on a revenue of KRW3.6 trillion ($2.85 billion), down 5.5%.
Lotte Vietnam Shopping JSC recorded a sales revenue of KRW326,131 million ($258 million) and a profit of KRW7,348 million ($5.8 million) in 2022; Lotte Cinema Vietnam Co. Ltd. posted a sales revenue of KRW39,156 million ($31 million) and a loss of KRW16,298 million ($12.9 million) last year, according to the parent company’s report.