Emart Reports Record Sales Despite Starbucks Losses

Emart reported a 46% increase in operating profit for the third quarter of this year, driven by the simultaneous growth of discount stores, warehouse clubs, and super supermarkets. The company's total sales also surpassed 5 trillion won for the first time. Although SCK Company, which operates Starbucks, reported a loss, Emart achieved growth in both revenue and profitability in its core retail business.
 
Emart announced on November 11 that its total sales for the third quarter reached 5.104 trillion won, an 11.1% increase compared to the same period last year. Operating profit rose to 166 billion won, marking a 46.3% increase. This is the first time quarterly sales have exceeded 5 trillion won. Cumulative operating profit for the first three quarters of this year also increased by 28.8% to 337.9 billion won compared to the same period last year.
 
The improvement in performance was attributed to enhanced price competitiveness, product innovation, and store renovations. Emart expanded its large discount event, 'Goraeit Festa,' based on cost-saving effects from consolidated purchasing. Sales and visitor numbers for the event in the third quarter increased by 29.2% and 14.7%, respectively, compared to the previous year. Sales of the ultra-low-cost private label '5K Price' also more than doubled.

Strengthened product competitiveness led to an increase in customer traffic. Visitor numbers in the third quarter rose by 5.3% for discount stores, 8.0% for Traders, and 11.5% for Emart Everyday. The Gyeongsan store, revamped into a 'Starfield Market' combining shopping and relaxation, saw sales increase by 18.4% and visitor numbers rise by 8.4%. The Dongtan store also experienced increases in sales and visitor numbers of 11.4% and 7.7%, respectively.
 
Notably, the warehouse club Traders led the growth. Total sales for the third quarter reached 1.1668 trillion won, a 16.6% increase, while operating profit rose by 40.5% to 55.2 billion won, marking the highest quarterly performance in both sales and operating profit. Sales of its private label 'T Standard' and in-store food area 'T Cafe' increased by 16.6% and 15.5%, respectively.
 
Emart Everyday also saw improvements in both revenue and profitability. Total sales for the third quarter reached 399.5 billion won, up 7.7%, while operating profit increased by 11.1% to 11 billion won. Strengthened price competitiveness through consolidated purchasing and expanded local delivery contributed to this growth. Quick commerce sales rose by 38.5%.
 
The financial performance of key affiliates also improved. SSG.com improved its profit and loss by 15.8 billion won compared to the same period last year through enhanced product and logistics efficiency. Emart24 reduced its operating loss from 7.8 billion won to 2.9 billion won through a profitability-focused business restructuring. Chosun Hotel & Resort recorded a 2.7% increase in operating profit to 22.6 billion won, benefiting from an increase in foreign guests.
 
Meanwhile, consolidated net sales for the third quarter reached 7.4919 trillion won, an increase of 911 billion won compared to the same period last year, but operating profit fell by 69.6% to 46.1 billion won. The loss of 45.3 billion won reported by SCK Company due to the suspension of e-frequency had a significant impact.
 
An Emart official stated, "The consistently strengthened competitiveness of our core business has led to an expansion of our customer base, driving both revenue growth and profitability. We will continue to innovate in retail while expanding benefits that customers can feel, further solidifying our market leadership."