Lotte Group plans to invest US$11 billion in retail
South Korea’s Lotte Group says it plans to invest US$11 billion in its expanding its retail business during the next five years.
Retail will account for 25 per cent of a larger $44 billion strategy which will also cover its tourism, food, chemicals and construction business.
But most of the retail investment will be outside South Korea, with expansion in Vietnam and Indonesia singled out as priorities.
Lotte is South Korea’s fifth largest company and is refocusing on growth after weathering a high-profile corruption scandal that saw the release from jail of the group’s chairman last month.
In a statement, the company said it will employ some 70,000 new staff over the five years, the majority of them in its e-commerce and retail business. The company’s retail restructuring strategies indicate a significant move away from declining hypermart/department store sales activity towards online sales.
Conspicuously absent from the report was mention of the group’s business in China. Profits from China have suffered in recent months due to a consumer boycott.
According to Bloomberg, Lotte’s investment plans will allocate 40 per cent for chemicals and construction, 25 per cent to retail, 25 per cent to tourism and services, and 10 per cent to foods.