April 20, 2024

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[THE INVESTOR] Shinsegae’s flagship department store business continues to suffer from THAAD row aftermath, and when the governement reinforces regulations on retail companies the retail giant will be affected considerably, said Hyundai Motor Investment and Securities on Aug. 23, lowering the target price to 235,000 won (US$207.82) from 280,000 won.

Its operating income will improve more than 20 percent in the second quarter, with 1.79 trillion won revenue and 52 billion won operating profit, estimated the securities firm. 

There are expectations for the new government to stimulate domestic spending but there is no visible index of improvements yet, said analyst Park Jong-ryeol. 

Fair Trade Commission’s policy to end unfair practices in the distribution sector, and inclusion of shopping complexes and outlets to the list of large retailers that have to limit operating days will hurt it, added the analyst.
Decreasing loss from duty-free division and fast growth of online mall are, however, favorable, noted Park. 

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