Korea’s retail giant Lotte said on May 15 it will inject 3 trillion won (US$2.84 billion) into its e-commerce business in the next four years to cope with the rapid expansion of the online market.
As part of its plan, Lotte Shopping said eight online malls that have been separately operated by its affiliates will be integrated into one, with an aim to generate 20 trillion won in sales by 2022.
A new e-commerce department, set to launch in August, will be responsible for the new platform, which will encompass the retailer‘s department store business, discount store chain and duty-free operations, it said.
Lotte Shopping’s online revenue stood at 7 trillion won last year.
The retailer’s move to expand its e-commerce business comes in line with a steep rise of purchases made over the internet in Korea as the use of smartphones has fully caught on with local consumers.
Purchases made using the internet and mobile devices reached a record 8.96 trillion won in March, up 20.1 percent from a year earlier, according to data from Statistics Korea.
By Song Seung-hyun and newswires (email@example.com