SOUTH KOREA: Lotte Shopping expects profit hike in 2010

By: just-food.com | 12 March 2010

South Korean retailer Lotte Shopping expects profits to rise almost 9% this year as the business continues to expand at home and abroad.

The company yesterday (11 March) forecast an 8.9% increase in net profit in 2010 to KRW780bn (US$691.2m).

The retailer, which is digesting two significant acquisitions made in the last four months, is targeting an 11.5% rise in turnover to KRW13.4trn.

In January, Lotte won the race to buy local convenience store chain Buy The Way for around KRW275bn.

The acquisition of Buy The Way came a month after Lotte won regulatory clearance in China for its HK$4.87bn (US$627.7m) purchase of local supermarket group Times.

Lotte is planning to spend KRW2.3trn on capital expenditure in 2010 to boost its store networks in South Korea and overseas.

In China, Lotte is planning to open 13 stores, taking its estate in the country to 92 outlets. The retailer is also planning openings in Indonesia and Vietnam.

Sectors: Emerging markets, Retail