Monday, September 16th, 2013
According to industry sources on September 15, Korea's major hypermarket operator Lotte Mart has reduced the number of new stores to be open this year in China to ten from previous 20. The company attributed the decision to the concerns of the Chinese economy losing steam. During the second quarter, Lotte Mart closed two store locations while opening two.
It plans to open five or six new stores in China by the year's end while launching five in Indonesia and two in Vietnam. Currently the retailer is running a total of 143 locations in three Asian countries, including 105 in China, 34 in Indonesia, and four in Vietnam.
E-Mart, the largest retailer in Korea, has become more cautious than Lotte Mart by deciding not to open any new store in China after selling off 11 locations last year out of 27. The plan to open the first store in Vietnam is being postponed as well. Huh In-cheol, chief executive of E-Mart, said in an interview with the Korea Economic Daily, "There will be no more investment in China. As for Vietnam, this is a market we have to enter with prudence."
An E-Mart official said, "We have already secured a site for a Ho Chi Minh City location, but are not sure when we will get the government approval for the business."