What: in 2020, the Lotte Shopping platform has only grown by 7% compared to 2019

Why is it important: The shinsegae platform grew by 37% during the same period

Cho Young-je, chief executive of Lotte Shopping’s e-commerce Business Division, has resigned in response to the company’s struggles to grow its online presence.

Lotte Shopping launched Lotte On, its e-commerce platform encompassing the company’s seven retail brands like Lotte Department Store, Lotte Mart and Lotte Home Shopping, last April. But the player is struggling to cement its position in Korea’s online shopping market, which grew 19% year-on-year in 2020. Lotte Shopping’s gross merchandise value hit KRW 7.6 trillion (USD 6.7 billion), marking a mere 7% boost from 2019, while rival Shinsegae Group’s digital arm SSG.com grew 37% during the same period.

Lotte, which said Cho resigned due to health problems, is now looking to hire a CEO from outside the firm with e-commerce expertise.

Lotte Shopping’s E-Commerce Head Steps Down Amid Digitisation Struggle 

Lotte Shopping struggles to find its place online