E-Mart posts first-ever loss; plans to sell assets
Korean discount chain operator E-Mart has posted its first-ever net loss, amid growing competition from online shopping rivals and e-commerce giants.
The company’s quarterly results showed a net loss of KRW26.6 billion (US$24.7 million) between April and June, its first negative result since it was spun off from Shinsegae Group in 2011. The loss stands in comparison to a net profit of KRW94.8 billion ($77.7 million) during the same period last year.
The company says it plans to raise 1 trillion won (US$820 million) by selling assets and will buy back stocks worth some 100 billion won to boost shareholder value.
E-Mart says it expects its losses will to continue into the next financial period.
“Online archrivals, such as Coupang Inc and other major e-commerce operators are forecast to expand their food category later in the year,” said Hana Financial Investment expert Park Jong-dae, “which could further weigh down E-Mart.”