Shinsegae to spend 300 bln won in loss-making convenience store business
SEOUL, July 13 (Yonhap) -- Retail giant Shinsegae said Thursday it will invest 300 billion won (US$263 million) over the next three years to help its loss-making convenience store business cope with the rapidly growing market.
Shinsegae, which tapped into the convenience store market in 2014 with an acquisition, has been suffering from losses as a relative newcomer in the crowded industry, which first emerged in the country in the 1980s.
Shinsegae said it will change the name of its convenience store brand from Withme to emart24 to attract more customers familiar with the country's largest discount chain E-Mart operated by the retailer.
"The investment will be for building more distribution centers and developing new operating systems for the next generation," Kim Song-yong, chief of the Withme operator, said during a press conference held in Seoul.
The convenience store operator aims to run 2,700 stores and reach 700 billion won in sales this year, nearly double from the 378.3 billion won recorded last year. It currently runs 2,174 stores nationwide.
The market size for convenience stores in South Korea, meanwhile, surpassed 20 trillion won last year, up 18.6 percent from 17.2 trillion won the previous year, according to industry data.
Fast growth of single-person households and an aging society led to rising demand for quick foods and daily necessities that are best found at convenience stores.
scaaet@yna.co.kr
(END)
-
1 BTS wins 6 prizes at 2021 Gaon Chart Music Awards
-
2 Samsung unveils new flagship phone with BTS, viral Korean act
-
3 For veteran idol U-know Yunho, it's all about giving his best
-
4 'Boy With Luv' becomes 2nd BTS music video to hit 1.1 bln views
-
5 Ex-BIGBANG member Seungri additionally indicted for inciting assault
-
1 Samsung unveils new flagship phone with BTS, viral Korean act
-
2 BTS wins 6 prizes at 2021 Gaon Chart Music Awards
-
3 S. Korea's military strength 6th in world, N. Korea at 28th: report
-
4 (News Focus) Anger mounts over deepfake porn targeting Korean female celebs; more than 330,000 sign petition
-
5 Ex-BIGBANG member Seungri additionally indicted for inciting assault
-
1 (LEAD) Seoul moves warship away from Hormuz Strait amid negotiations over seized tanker: source
-
2 Cafes, gyms reopen after gov't eases COVID-19 rules
-
3 New infection cases under 400 for 2nd day; virus curve sliding downhill
-
4 (2nd LD) Samsung heir Lee jailed again, after getting 2 1/2 year prison sentence for bribery
-
5 Moon says S. Korea-U.S. exercise could be discussed with N. Korea if necessary