Lotte Mart Mongolia is opening its first store, in Ulaanbaatar, in the first half of next year.
The South Korean retailer has set up a joint venture with local retailer Nomin Holdings, which will sell Lotte’s private label products for the next 10 years. It is initially targeting sales of US$3 million annually.
To prepare for this expansion, Lotte Mart has already sold its food products of its private labels – Only Price, Yorihada, and Choice L – last year at four stores including a state-run department store and two supermarkets owned by Nomin in Ulaanbaatar.
Nomin Holdings is one of Mongolia’s three largest enterprises and has also worked with other global names including L’Oreal, Mango, and Century 21 in the country.
Mongolia is one of Lotte’s latest foreign markets after it pulled out from China. Parent Lotte Group operates 46 Lotte Mart stores in Indonesia and 13 in Vietnam. It launched its fast-food brand Lotteria in Ulaanbaatar last month.