April 25, 2024

• 

China’s actions will speed up changes in the landscape of the industry as many smaller operators, who are already bleeding, will be hit hardest, said analyst Lee Ji-yeong. 

Everyone is suffering now, but when the upcycle begins Shinsegae is the one to be watched, as it could be an unwitting beneficiary, said the analyst.
Its standalone revenue from department store sector is growing solidly, at 15 percent in January and 9.6 percent in February on-year. Although it needs time to absorb the difficult situation, the duty-free sales will not have significant effect on its earnings, noted Lee. 

Shinsegae’s first-quarter earnings are sound and will continue the upturn from the second quarter, which makes it still attractive as a mid- to long-term investment, added the analyst. 

By Hwang You-mee (glamazon@heraldcorp.com)