What: The group will continue to expand investments into its e-commerce businesses, including urban air mobility (UAM) services and the metaverse, despite its growing losses from online shopping.

Why it is important: While Lotte Shopping sales and operations profit dropped, the department store business put up a good defense.

Last year, Lotte Shopping marked sales worth KRW 15.58 trillion and an operating profit of KRW 215.6 billion, down respectively by 3.7% and 37.7% year-on-year. Its e-commerce revenue declined by 21.5% to show KRW 108 billion, while its operating loss increased by 64% to reach KRW 156 billion in the same period.

UAM is a transportation service using small aircraft, such as flying cars that can take off and land vertically. Lotte plans on utilizing its drones to deliver online orders to isolated areas that cannot be reached easily by road.

Lotte Group's convenience store brand, 7-Eleven, will also play a key role in strengthening its e-commerce. The retailer plans to utilize some 6,000 stores in the country as distribution centres for delivering online orders within an hour of purchase. It also recently acquired Mini Stop, which has 3,000 stores ― a move expected to boost Lotte Shopping's quick commerce initiative.

For its metaverse service, Lotte is almost finished developing its online platform. Lotte's goal is to connect all of its retail subsidiaries with its metaverse service. This connection will enable customers to try out various items in the virtual world prior to making purchases online.

Lotte continues investing in digital transformation 1