Lotte Group Chairman Shin Dong-bin has rejoined Lotte Shopping as an internal director after five years. With the retail sector facing difficulties, the industry is closely watching whether he can revive the business.
The conglomerate held its annual shareholders' meeting on March 24 at Lotte Mart Max in Yeongdeungpo, Seoul, where shareholders approved Chairman Shin’s return to Lotte Shopping’s board after he stepped down in 2020. He already serves on the boards of four Lotte affiliates—Lotte Corporation, Lotte Chemical, Lotte Wellfood, and Lotte Chilsung Beverage.
Shin resigned as Lotte Shopping’s director in March 2020 before his term expired, following criticism from institutional investors such as the National Pension Service over excessive cross-affiliate board memberships. His return has also drawn some opposition, as he was previously convicted of involvement in a government influence-peddling scandal and breach of trust.
However, with Lotte facing financial struggles, boosting its core businesses has become urgent. The company believes Shin’s leadership will speed up decision-making and help drive recovery. As an internal director, he can directly influence investments and business strategies, ensuring faster execution and accountability.
Lotte has been under pressure due to liquidity concerns, with speculation about financial instability last year. Earlier this year, at the company’s value creation meeting (VCM), Shin acknowledged, “Last year was one of the toughest in Lotte’s history,” adding, “While we are selling assets and reassessing our holdings, real recovery will come from strengthening our core businesses and improving profitability.”
Lotte Shopping’s performance has also been poor. Its sales dropped 3.9% year-on-year to 13.99 trillion won last year, while operating profit fell 6.9% to 473.1 billion won. Revenue has been on a downward trend, declining from 15.58 trillion won in 2021 to 15.48 trillion won in 2022, and 14.56 trillion won in 2023.
Industry insiders expect Shin’s return to help speed up improvements in key sectors, including department stores, superstores, and e-commerce.
Lotte Shopping has outlined six main strategies: rebuilding its position in key department store locations, becoming South Korea’s top grocery retailer, revamping its e-commerce strategy, turning around struggling subsidiaries, advancing retail technology, and expanding its premium shopping business in Southeast Asia.
Lotte Department Store plans to strengthen its market position by reopening the revamped Time Villas Gunsan shopping mall and carrying out large-scale renovations at major locations like Lotte World Mall and its flagship Myeong-dong store. It is also reviewing potential sites for mixed-use Lotte complexes overseas to boost global competitiveness.
Lotte Mart and its supermarket division aim to improve product quality, cut procurement costs, and enhance fresh food offerings to increase efficiency at home while expanding overseas. The company is launching its new ZETTA shopping app and moving ahead with plans to open Korea’s first customer fulfillment center (CFC) in Busan by 2026 to enhance online shopping services.
In e-commerce, Lotte is focusing on fashion and beauty while using its Lotte Town platform to boost sales. The company is also working to improve profitability through cost-cutting and efficiency, aiming for an early turnaround.
