April 16, 2024

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[THE INVESTOR] E-mart is positively reviewing closing its entire operations in China, according to local media reports on April 26. 

The Korean hypermarket chain of Shinsegae Group entered China in 1997, expanding to 26 outlets in mainland China by 2010. In 2011, however, it began restructuring as it was unable to make an impact in the market already saturated with local competitors.

Its accumulated loss from China in the last four years reached 150 billion won (US$133.16 million). E-mart acknowledged that it is seriously considering complete withdrawal adding that most underperforming outlets will be closed first. 

Its domestic rival Lotte Mart has recently suffered over 200 billion won losses, with 87 outlets out of 99 suspended of business, as Chinese government took a series of retaliatory actions against its provision of a site for THAAD system. Although the losses will continue even when the suspension is lifted, it is not considering pulling out of China at the moment, said the company. 

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