Lotte and Shinsegae hinted at fiercer competition in the retail sector this year as they announced plans for more investment and job creation despite economic uncertainties globally.
Lotte Group, the nation’s No. 1 retail conglomerate, will invest 6.73 trillion won ($5.78 billion) and hire 13,500 workers this year to continue last year’s sales momentum.
Lotte recorded 73 trillion won in sales last year, up 19 percent compared to 2010. This year’s investment increased almost 50 percent from 2011.
“Even though the economic outlook appears not so easy in 2012, I want you to be prepared for opportunities coming in a depressed economy,” Lotte Group chairman Shin Dong-bin said in a recent meeting with top executives.
Lotte said it will pour 3.3 trillion won into its retail business alone, with some 30 new Lotte department stores and Lotte Mart outlets scheduled to open this year.
Lotte Mart, the discount chain which currently operates 120 overseas locations, also plans to open three more stores in China and Indonesia within the year.
Shinsegae Group, the second-largest retail giant, also will invest 1.9 trillion won and hire 8,000 new workers this year with the aim of expanding its market presence, a company official said Monday.
The investment plan is the largest-ever in size since the group’s establishment.
Vice chairman Chung Yong-jin emphasized an aggressive investment in his New Year’s message, saying “Even in a difficult environment we cannot stop investment and growth.”
Chung pledged, among other things, to secure the group’s market dominance in multiplex shopping mall operations and online businesses.
He is scheduled to discuss this year’s management strategy during a meeting with all of the group’s executive officials on Tuesday.
By Lee Ji-yoon (
jylee@heraldcorp.com)
