The luxury platform Balaan has applied for corporate rehabilitation procedures, raising concerns over a potential 'second Timaf incident,' while the department store sector in the domestic stock market has performed well. As worries over e-commerce platforms increase, there are analyses suggesting that department stores have gained indirect benefits.
According to the Korea Exchange on the 31st, while the KOSPI index has increased by 3% this year, the stock prices of the three major department stores have risen by a greater margin. Notably, Hyundai Department Store's stock has surged by 31% just this year, surpassing Shinsegae's market capitalization. During the same period, Lotte Shopping rose by 16%, and Shinsegae increased by 5%.
Despite a continuing economic slump leading to poor operating conditions for department stores, performance improvement is ongoing, particularly in the luxury and food sectors. This is interpreted as being influenced by growing consumer anxiety regarding online platforms, which has led to strong stock performance.
Domestic department stores hold considerable assets, and the aggressive shareholder return policies are also points of interest for investors. According to disclosure standards, Lotte Shopping's dividend yield is 7.1%, while Hyundai Department Store and Shinsegae stand at 3.7% (including interim dividends) and 3.4%, respectively.
An industry insider noted, 'The stock prices of Japanese department stores remained undervalued for a long time, but in recent years, thanks to corporate value-boosting policies, they have been re-evaluated,' adding, 'There is a possibility for a rise in domestic department stores as well.'