Shin Dong-bin, chairman of Lotte Group, is accelerating the company's strategy in Vietnam, which he has identified as a key overseas market. Lotte Mart has opened a new store in Tay Ninh, expanding its operations into regional cities for the first time in three years, while the group is also enhancing its retail competitiveness to support growth in Southeast Asia.
According to industry sources, Lotte Mart opened its Tay Ninh store on July 9, marking its 16th location in Vietnam and its first new store since the Westlake Hanoi location in 2023. The move is significant as it shifts focus from major cities like Ho Chi Minh City and Hanoi to regional areas with high growth potential.
This opening follows Shin's directive earlier this year to expand Lotte's business in Vietnam. In April, he visited the Lotte Mall Westlake Hanoi and emphasized that "Vietnam is a core country for the group's global operations," urging for strengthened competitiveness in the food and retail sectors. The Tay Ninh store features a proven grocery store model, with approximately 88% of its 2,165 square meters dedicated to food, enhancing its offerings in fresh and ready-to-eat products.
The store's signature section, "Cooking Kitchen," offers over 300 deli items, including K-food such as kimbap, tteokbokki, and chicken gangjeong, as well as sushi and local dishes. A dedicated "K-Food Zone" showcases Korean noodles and processed foods, targeting the growing demand for Korean cultural products. Lotte Mart is also expanding its direct sourcing of fresh products through its own brand, Fresh 365, to differentiate itself from local competitors.
Lotte is developing Vietnam as a key overseas hub, with various subsidiaries including Lotte Mart, Lotteria, Lotte Department Store, hotels, and shopping malls operating locally to create synergies between retail and service sectors. The Lotte Mall Westlake Hanoi, a mixed-use complex combining shopping, hotels, and offices, has become a symbolic base for Lotte's operations in Vietnam. Lotte Mart Vietnam is reportedly considering the opening of its first supermarket in Ho Chi Minh City, covering 300 pyeong, in the second half of the year.
Performance has been steadily improving, with Lotte Mart Vietnam reporting sales of 426.6 billion won and an operating profit of 40.5 billion won last year. In the first quarter of this year, sales reached 134.3 billion won, with an operating profit of 16.9 billion won, marking increases of 15.3% and 34.8%, respectively, compared to the same period last year. Since turning a profit in 2022, the company has consistently improved its profitability, driving growth in its overseas operations.
Industry analysts suggest that as the domestic retail market matures, Vietnam is becoming a central growth pillar for Lotte, driven by high economic growth rates, a young population, and increased consumer spending linked to the spread of K-content.
Shin Joo-baek, CEO of Lotte Mart Vietnam, stated, "The Tay Ninh store is a small-to-medium-sized model that consolidates Lotte Mart's K-food and grocery capabilities in the Vietnamese retail market. We will accelerate our territorial expansion across Vietnam, including the opening of the Park Jang store in the second half of the year."
* This article has been translated by AI.
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