Department Store Operating Profit Increases by 39.7% to 59.4%, Driven by Foreign Tourists

Lotte, Shinsegae, and Hyundai Department Store reported a year-on-year increase in operating profit of 39.7% to 59.4% for the first half of this year. Major stores that attracted foreign tourists, such as Shinsegae Gangnam, The Hyundai Seoul, and Lotte's main and Jamsil branches, led the performance improvement. Shinsegae Gangnam recorded the highest sales in the nation last year at 3.6717 trillion KRW, and foreign sales in the second quarter increased by 47%. Shinsegae's main store saw a 77% increase in sales and a 394% rise in foreign sales in the second quarter. The Hyundai Seoul and Trade Center branches of Hyundai Department Store reported foreign sales increases of 134% and 131%, respectively. Lotte Department Store's main and Jamsil branches saw a 21% increase in sales for large stores in the second quarter, with foreign sales rising by 120%. For the first half of the year, sales were recorded at 4.0427 trillion KRW for Shinsegae, 1.7635 trillion KRW for Lotte, and 1.2764 trillion KRW for Hyundai. Lotte's operating profit increased by 59.4% to 310.9 billion KRW, while Shinsegae and Hyundai reported increases of 39.7% and 47.7%, respectively, with profits of 249.9 billion KRW and 246 billion KRW. In the second half of the year, Shinsegae plans to continue its growth momentum through the effects of its main store's renovation, while Hyundai Department Store aims to sustain growth through new openings.