'Goreit Festa' Effect… Leading to a Turnaround
Emart has achieved a remarkable performance rebound in the second quarter of this year.
According to a disclosure on the 12th, consolidated net sales reached 7.039 trillion won, a slight decrease of 0.2% compared to the same period last year. However, operating profit saw an increase of 56.2 billion won, totaling 216 billion won, successfully turning to profit.
On a separate basis, total sales amounted to 4.2906 trillion won, with operating profit reaching 15.6 billion won. This marks an 11.8% increase in sales and an increase of 36.6 billion won in operating profit compared to the previous year. The performance of Everyday, which was merged in July last year (sales of 362.2 billion won and operating profit of 5.4 billion won), was also included.
The improvement in performance can be attributed to cost reductions through integrated purchasing and a strategy of passing on these benefits to prices. The large-scale discount event 'Goreit Festa,' which started at the beginning of the year, featured popular items such as Korean beef, watermelon, and pork belly at up to half price, simultaneously boosting both sales and visitor numbers. During the event in June, sales and visitor counts increased by 33% and 18%, respectively.
Effective Space Innovations like 'Starfield Market'
Emart has accelerated the renewal of stores and expansion of new formats to reflect changes in customer lifestyles.
Spaces like Background and Kids Ground, which provide relaxation and experience opportunities, along with anchor tenants, have established 'Starfield Market' as a local landmark.
The first location in Jukjeon saw sales increase by an impressive 104% compared to the previous year in the second quarter. Visitor counts also increased by 82%. The second location at Kintex reported a 39% increase in sales and a 67% rise in visitor numbers just one month after its renewal opening.
Traders experienced over a 4% increase in visitor counts, resulting in an 8.1% increase in sales in the second quarter, and discount stores also maintained an upward trend with a 0.3% increase in customer numbers. Shinsgae Property, a major subsidiary, achieved operating profit of 5.2 billion won (up 4.5 billion from last year) due to the strong performance of Starfield Goyang and COEX, while Shinsgae Food achieved an operating profit increase of 39% to 13.5 billion won due to cost improvements.
Strengthening 'Super Gap' Strategy in the Second Half
Emart plans to strengthen its market dominance in the second half of the year by expanding price advantages and differentiated products.
Following the renewal opening of Starfield Market Dongtan at the end of July, a new Traders location will be introduced in September. The company plans to accelerate the discovery of ultra-low-priced products through strategic price investments.
In the online sector, SSG.com will enhance grocery price competitiveness based on integrated purchasing and begin independent product development. Gmarket will expand membership-exclusive events and partnerships, elevate customer programs, and improve seller competitiveness and search convenience to boost platform competitiveness.
An Emart official stated, "The innovations in price, products, and space that have been ongoing since last year are leading to clear results," adding, "We will continue to accelerate our offline super gap strategy through structural innovation and price investments in the second half."
Image Sources: Starfield Market Jukjeon / Provided by Emart, Goreit Characters / Photo by Shinsegae Group, Provided by Emart.
