What: Most retailers build new warehouses to strengthen their e-commerce businesses. Lotte Shopping is trying something different by leveraging its existing stores and utilizing technology so that they become the core of its logistics network.

Why it is important: Lotte On app, a latecomer to e-commerce, has not been able to achieve a strong presence in the online shopping market so far. Lotte On had just a 5% share in e-commerce at the end of last year, according to Kyobo Securities.

Lotte On, an e-commerce app made available in April 2020, currently offers two-hour delivery of groceries in limited areas and plans to roll out the service nationwide by the end of next year.

Coupang, the second-largest e-commerce operator after Naver Shopping, is steadily investing to build more warehouses. SSG.com runs three warehouses, and is currently looking for place to build a fourth one.

Lotte doing e-commerce its own way