Lotte Shopping to merge beauty chain LOHB’s into grocery store Lotte Mart

[Photo by Lotte Shopping Co.]

Lotte Shopping Co., operator of department stores and discount stores under South Korea’s Lotte Group, has decided to merge its personal and beauty care store brand LOHB’s with its supermarket chain Lotte Mart amid slow sales and intensifying market competition.

The board gave a nod to the integration plan on Thursday.

Lotte Shopping advanced into the health and personal beauty care market in 2013 with the launch of the first LOHB’s outlet in Hongdae, Seoul. The business fast expanded with the growth of the market but struggled against market dominant CJ Group’s Olive Young.

Lotte Shopping’s division for other businesses including LOHB’s logged a cumulative operating loss of 217.2 billion won for the three quarters of the year on subdued domestic consumption due to Covid-19 outbreak.

The number of LOHB’s outlets decreased to 108 as of the third quarter from 129 late last year.

“Currently, many of LOHB’s stores are being merged into Lotte Mart locations. The integration of the two businesses will be able to create synergy for enhanced profitability,” said a Lotte Shopping official.

Lotte Shopping shares fell 0.7 percent to close at 99,800 won ($90.51) in Seoul on Friday.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]