Shinsegae Group Chairman Jeong Yong-jin's declaration of a "year of renewed growth" at the start of the year has been validated by impressive first-quarter results. E-Mart reported an operating profit of 178.3 billion won, marking its highest first-quarter performance in 14 years. Traders also achieved record quarterly sales, and the impact of the Starfield Market renovation is evident in the numbers.
E-Mart announced on May 13 that its consolidated operating profit rose 11.9% year-on-year to 178.3 billion won. Although net sales decreased by 1.3% to 7.1234 trillion won, profitability showed significant improvement. This consolidated operating profit is the highest for the first quarter since 2012.
The standalone operating profit also increased by 9.7% to 146.3 billion won, the highest for the first quarter in eight years since 2018. Standalone total sales rose by 1.9% to 4.7152 trillion won.
In his New Year’s address, Chairman Jeong stated, "The innovative decisions made by Shinsegae Group over the past two to three years have been meticulous preparations for renewed growth, and in 2026, we will soar high." He emphasized the need to restore the "top nature" befitting a leading company and to establish a new market paradigm shift.
In the first quarter alone, Jeong visited key locations, including Starfield Market in Jukjeon and Traders in Guwol, four times to assess operational effectiveness.
The paradigm shift Jeong announced in his New Year’s address has been demonstrated in the first quarter, serving as a catalyst for E-Mart's transformation.
The primary driver behind this performance improvement is the "customer-oriented space innovation." Stores that have been renovated into experience-focused Starfield Markets have achieved remarkable results.
For instance, the first-quarter sales at the renovated Ilsan store increased by 75.1% compared to the same period last year, and the number of visitors surged by 104.3%. The Dongtan and Gyeongsan stores also recorded double-digit sales growth of 12.1% and 18.5%, respectively.
Notably, the proportion of customers staying for over three hours increased by an average of 87.1% across the three renovated stores. The company explained that the focus on experiential content and the design of stay-oriented spaces have extended customer dwell time and shifted consumption patterns toward experience-driven shopping, enhancing offline competitiveness.
Price innovations that pass on cost improvements to customers also contributed to the success. E-Mart's flagship discount event, the "Whale It Festa," saw sales and customer numbers grow by 3.5% and 6.0%, respectively, compared to the previous year.
The growth of the warehouse-style discount store Traders also bolstered overall performance. Traders reported total sales of 1.0601 trillion won in the first quarter, a 9.7% increase year-on-year, setting a new quarterly record. Operating profit rose by 12.4% to 47.8 billion won.
Sales of the private brand "T-Standard" increased by 40% year-on-year, while the dining corner "T-Cafe" grew by 24%. The company plans to continue product innovation by replacing over 50% of its operating products this year.
Key subsidiaries also contributed to the growth. Chosun Hotel & Resort achieved a 116.7% increase in operating profit to 3.9 billion won, driven by improved average spending per guest. SCK Company, which operates Starbucks, maintained stable growth with a 7.3% increase in net sales to 817.9 billion won compared to the previous year.
Gmarket rebounded in gross merchandise volume (GMV) growth after four years since launching its joint venture with AliExpress, despite continuing operating losses. The company explained that this planned investment prioritizes market share and customer base expansion. In March, GMV and average spending per customer increased by 12% and 10%, respectively, with similar trends continuing into April.
E-Mart stated, "The innovative paradigm shift emphasized by Chairman Jeong in his New Year’s address is already showing visible results in the first quarter, and we will accelerate future new business initiatives, including the construction of an artificial intelligence (AI) data center, based on the growth of our existing operations."
* This article has been translated by AI.
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