Lotte Department Stores Began Losing Pressure On Chinese Stores.

By the end of the three quarter of September, Lotte Shopping Lotte Department store sales increased 6.9% to 77190 billion won, compared with 72180 billion won in the same period last year. The increase in revenue was mainly driven by financial and pharmaceutical businesses, and the core department stores and supermarkets' retail business growth was below average.

In the three quarter, Lotte Shopping Lotte Department store sales in the same store decreased by 1.4%, while sales in the same store in the supermarket decreased by 0.1%, while the sales in department stores in the international market increased by 14.2%, but the performance of the supermarket business was weak and the same store sales fell 3.1%.

It accounts for about 1/4 of Lotte Shopping.

The three quarter revenue of general merchandise business recorded 19290 billion won, an increase of 3.4% over the same period last year. The increase was mainly driven by an increase of 24.5% in the international market, while the local market grew by only 3.1%. The operating profit of the Department fell by 39.4% to 63 billion won compared with the same period last year, but the international market is still in a deficit, but the loss narrowed to 27 billion won compared with the same period in the same period last year.

Lotte Shopping Lotte Department store business in the three quarter of the domestic market the only category to achieve the same store sales growth, an increase of 9.1%, the food business is flat.

In the three quarter, the same store sales in the 2.5% quarter, accessories and global fashion brands recorded a decrease of 2.5%, 4.8% and 1.4% respectively.

The weakness of the supermarket business led the sector's operating profit in the three quarter to plummet by 87.2% to 6 billion won, of which the international market deficit increased to 35 billion won. The revenue growth of the sector in the three quarter was only 2.5% to 22370 billion won, and the international market was weaker and only 0.9%.

The international market of supermarket business is mainly concentrated in China. There are 116 Lotte Marts Lotte Mart stores in China, of which 5 have been closed in the three quarter, an increase of 4 rooms.

The Chinese market is dominated by Shanghai and Beijing. Shanghai accounts for more than six of the total 74, Beijing 12, Chongqing 6, Shenyang 8.

On Friday, Lotte Shopping Co., Ltd. Lotte Department shares reported a 234000 decline of 0.43% yuan, which has plunged 14% so far this year.

The growth rate of the same market in the international market is mainly driven by 16.4% growth in the Chinese market, and the SSS growth in Indonesia is 3%.

Lotte Shopping Lotte Department said that the domestic department store business in the fourth quarter will be significantly improved. The return of tourists after MERS Middle East respiratory disease will be an important driving force for growth. Besides, the South Korean government's economic stimulus action will also help boost domestic consumption desire.

The company currently operates 116 department stores and 9 international markets, 5 of which are located in China and 2 in Vietnam, Russia and Indonesia.