What: Lotte Department Store is advancing its ESG agenda by running a nationwide cold-storage bag collection event and paying 350 billion won early to its partners.

Why it is important: This approach demonstrates how retailers can balance sustainability, customer loyalty, and supplier relations to strengthen their market position.

Lotte Department Store is reinforcing its leadership in ESG by launching a nationwide cold-storage bag collection event during Chuseok and advancing 350 billion won in payments to its partners. The collection programme, which began in 2022, incentivises customers with L.POINT rewards for returning reusable cold-storage bags, fostering a culture of resource circulation and sustainability. The initiative has seen significant growth, with the number of bags collected rising by 60% over three years and a cumulative total of 80,000 bags. These bags are either upcycled into practical products or donated to support vulnerable communities, demonstrating a commitment to both environmental and social responsibility. In parallel, Lotte’s early payment to partners, completed eight days ahead of schedule, highlights its dedication to win-win management and supplier well-being, especially during the holiday season. These efforts underscore Lotte’s strategy of integrating sustainability, customer engagement, and robust partner relations, setting a benchmark for responsible retail practices.

IADS Notes: Lotte’s ESG-driven actions, including its human rights management certification in August 2025 (The Chosun Daily), reflect a broader transformation in Asian retail, with peers like Hyundai also prioritising sustainability and governance in July 2025 (Maeil Business Newspaper). Lotte’s customer engagement through recycling incentives aligns with global trends in loyalty innovation, as seen in May 2025 (Fashion Network). Its early partner payments contrast with the supplier challenges faced by Debenhams and Saks in 2025 (Retail Week, BoF), while its upcycling initiatives mirror circular economy strategies adopted by Falabella and Fortnum & Mason in February and September 2025 (America Retail, Retail Week).

Lotte Department Store is reinforcing its leadership in ESG