What: Korean retail groups posted unexpected losses in 2022 Q3.

Why it is important: Their department stores divisions are all growing and posting profits, which are offset by overseas, online and other categories businesses.

Korean department stores announced disappointing results for the third 2022 quarter:

-    Shinsegae increased sales by 17,3%, to €1,41bn, but profit fell to  €70m, down 50% from last year. The department store activity specifically increased by 19,8% to €440m.

-    Lotte shopping reported sales increasing by 0,2% to €2,88bn, but last year profit of €220m turned into a net loss of €70m this year. The department store activity increased sales by 17,3% to €550m and its operating profit increased to €80m, thanks to fashion items and international brands. China, online activity and the low performance of the electronic goods retailer Lotte Himart are the main reasons for the net loss at the mother company level.

Shinsegae- Source 1

Lotte- Source 2