Emart's consolidated operating profit in the first quarter of this year increased more than three times compared to the same period last year. This marks the highest performance in the first quarter in eight years since 2017. Analysts attribute this to a successful strategy focused on profitability through enhancing core competitiveness and sound management.
On the 12th, Emart announced that its consolidated operating profit was 159.3 billion won, a 238% increase compared to the same period last year. In the same period, sales rose to 7.2189 trillion won, reflecting a 0.2% increase from the previous year, and net profit increased by about 185% to 83.6 billion won.
Separately, Emart's sales reached 4.6258 trillion won, with operating profit at 133.3 billion won, reflecting increases of 10% and 43%, respectively. This separate operating profit is also the highest in seven years since 2018.
The results reflect the impact of sales and operating profit from the merger with Emart Every Day, which was a supermarket subsidiary, in July of last year.
By division, operating profit for discount stores increased by 54% to 77.8 billion won, while sales for warehouse-style discount store Traders recorded a 37% increase to 42.3 billion won. Sales for discount stores amounted to 3.03422 trillion won, a 0.3% increase from the previous year, while Traders' sales rose to 966.7 billion won, reflecting a 5.6% increase.
In specialized stores such as No Brand and Electro Mart, operating profit decreased by 5.3% to 56.6 billion won.
Emart analyzed that the results this time reflect the effectiveness of the 'three pillars' of offline retail—price, product, and space—undergoing significant innovation.
Since last year, Emart has built a unified purchasing system with Emart Every Day and convenience store Emart24, focusing on cost reductions and improving product competitiveness. Based on this, it implemented major promotions such as the 'price shock declaration' to offer essential goods at the lowest possible prices and the 'Whale It Festa,' receiving positive responses from customers.
The spatial innovation strategies of Starfield Market, which resembles a shopping mall, and Emart Food Market, which focuses on grocery stores, were also effective. In the first quarter of this year, Starfield Market's sales in Jukjeon increased by about 21% compared to the same period last year, and stores that underwent significant renovations, including Munhyeon (up 35%), Yongsan (up 11%), and Mokdong (up 6%), also saw improvements in their performance.
With an emphasis on value-for-money products and a space that customers want to revisit, customers who had previously moved online are beginning to return. In the first quarter, the number of customers by division increased by over 2% for discount stores and over 3% for Traders compared to the previous year.
The fortunes of major subsidiaries were mixed. SCK Company, which operates Starbucks, recorded first-quarter sales of 761.9 billion won, an increase of 3.7% compared to the previous year. During the same period, operating profit increased by 7% to 35.1 billion won.
Shinsegae Property, the operator of Starfield, reported sales of 104 billion won, a 33% increase. Operating profit rose to 36.4 billion won, a 198% increase from the previous year.
SSG.com recorded first-quarter sales of 356.8 billion won, down about 14% from the previous year. During the same period, it reported an operating loss of 18.1 billion won. G-Market's sales amounted to 200.6 billion won, a 21% decrease, while its operating loss grew to 12.1 billion won from 3.6 billion won.
Shinsegae Chosun Hotel & Resort reported sales increased by 26% to 164.6 billion won, while operating profit decreased by 67% to 1.8 billion won.
An Emart official noted, "The strategy of strengthening core competitiveness through innovation and reform that has been pursued since last year is showing tangible results" and added, "We will continue to pursue stable growth focused on profitability through innovation in price, products, and space."