Emart’s Q3 gross sales top 5 trillion won for the first time; Traders also posts a record

[Financial News] Emart posted strong results in the third quarter of this year, with both sales and operating profit rising on growth in its core hypermarket business. Growth was particularly pronounced across its offline retail operations, with warehouse-style discount retailer Traders posting record quarterly highs in both sales and operating profit.
According to the Financial Supervisory Service’s electronic disclosure system on the 11th, Emart’s gross sales on a standalone basis rose 11.1% year over year to 5.104 trillion won in the third quarter of this year. It was the first time quarterly gross sales had exceeded 5 trillion won. Operating profit for the same period increased 46.3% from a year earlier to 166 billion won.
Increased customer traffic to its core hypermarket business was a key driver of the improved results. Emart has strengthened its price competitiveness by cutting costs through consolidated purchasing, holding large-scale discount events and expanding its private-label (PL) products. With high inflation adding to the pressure on consumers’ grocery budgets, the strategy of leading with promotions and value-for-money products is seen as having boosted customer traffic and sales.
Emart’s discount stores in fact drew more customers by leading with large-scale discount events and ultra-low-priced products. In the third quarter of this year, sales at Emart’s ‘Goraeit Festa’ and visitor numbers rose 29.2% and 14.7%, respectively, from a year earlier. Sales of ‘5K Price,’ its ultra-low-priced private-label (PL) brand, also more than doubled over the same period.
Store renovations also helped attract customers. Since being transformed into a ‘Starfield Market’ combining shopping and relaxation spaces, the Gyeongsan store has seen sales and visitor numbers rise 18.4% and 8.4%, respectively. By enhancing the experience and relaxation features of existing stores in this way, Emart also increased total visitor numbers at its discount stores by 5.3% year over year in the third quarter of this year.
Warehouse-style discount retailer Traders also posted notable growth. Its gross sales in the third quarter of this year rose 16.6% year over year to 1.1668 trillion won. Operating profit increased 40.5% over the same period to 55.2 billion won, giving the retailer record quarterly highs in both sales and operating profit.
emart everyday, a company-run supermarket (SSM), also achieved growth in scale alongside improved profitability. In the third quarter of this year, its gross sales and operating profit rose 7.7% and 11.1%, respectively, year over year, to 399.5 billion won and 11 billion won.
Major affiliates also reported improved results. SSG.com’s earnings improved by 15.8 billion won year over year, helped by greater operational efficiency, among other factors, while emart24 narrowed its operating loss by 4.9 billion won from a year earlier to 2.9 billion won. Josun Hotels & Resorts posted operating profit of 22.6 billion won, up 2.7% year over year, as occupancy and average spending per guest rose with the increase in foreign visitors to Korea.
However, Emart’s consolidated results deteriorated due to weak performance at Starbucks Korea. SCK COMPANY, the Starbucks operator, recorded an operating loss of 45.3 billion won in the wake of the suspension of its e-Frequency promotion following controversy over its ‘Tank Day’ marketing. As a result, Emart’s consolidated operating profit in the third quarter fell 69.6% year over year to 46.1 billion won. Consolidated net sales for the same period rose 1.2% to 7.4919 trillion won.
An Emart official said, “The competitiveness of our core business, which we have steadily strengthened, has expanded our customer base and driven both growth in scale and improved profitability. We will continue to pursue innovation in retail while expanding benefits that customers can feel, further solidifying our market leadership.”
[email protected] Jang Yu-ha Reporter