What: Emart, led by Shinsegae Group Vice Chairman Chung Yong-jin, reported its first annual loss since going public in 2011, while Shinsegae Department Store, under the leadership of his sister Chung Yoo-kyung, posted record sales. This contrast highlights the differing fortunes of the two siblings' businesses within South Korea's retail conglomerate, Shinsegae Group.

Why it is important: The contrasting performances of Emart and Shinsegae Department Store reflect broader trends in the retail industry, including the challenges faced by traditional discount stores and the resilience of luxury department stores. The siblings' rivalry also sheds light on the strategic directions taken by different arms of the Shinsegae Group and their impact on the conglomerate's overall health.

South Korea's retail giant Emart, overseen by Vice Chairman Chung Yong-jin, has encountered significant challenges, culminating in its first annual operating loss since its 2011 spin-off from Shinsegae Group. The loss was primarily attributed to the poor performance of its construction subsidiary, Shinsegae E&C, amidst rising costs and a real estate downturn. Additionally, Emart's core retail and e-commerce operations faced setbacks, with declining profit margins and operating losses in its e-commerce platforms, SSG.com and Gmarket.

In stark contrast, Shinsegae Department Store, led by Chung Yong-jin's sister, Chung Yoo-kyung, achieved record sales, driven by growth in its luxury department stores. The upscale Gangnam District store notably surpassed 3 trillion won in sales, marking a significant achievement in South Korea's retail sector. Despite facing challenges from higher interest rates and inflation, Shinsegae Department Store's performance underscores the strength of the luxury retail segment.

This sibling rivalry within Shinsegae Group highlights the divergent paths and outcomes of the conglomerate's retail ventures, with Emart grappling with the competitive pressures of online retail and Shinsegae Department Store capitalizing on the enduring appeal of luxury shopping experiences.

Emart's loss vs. Shinsegae's gain: sibling rivalry in South Korea's retail