Reports from Korea suggest Lotte Group has lost more than 1 trillion won (US$853 million) in China in just three years.
Data assembled by CEO Score shows Lotte China made heavy losses between 2011 and 2014 as South Korea’s fifth largest company struggled to understand the Chinese consumer and build market share.
Last month, Lotte said it would close four loss-making stores in its Mainland China network – all in in East China’s Shandong Province.
Lotte is said to be losing market share in Mainland China unable to differentiate itself in the middle ground between local retail chains and the growing power of online retailers such as Alibaba and JD.com.
CEO Score’s data shows the losses are growing, not narrowing. It started with 92.7 billion won in 2011, reached 250.8 billion won in 2012 and a massive 580.8 billion won in 2014.
Lotte Mart has 120 stores in China, 116 in Korea, 39 in Indonesia and 10 in Vietnam.
The company is family owned with the leadership locked in a bitter power struggle and two brothers compete to take control from their 93 year old father.
Source: insideretail.asia
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