E-Mart, Korea’s largest discount store chain, recorded a sharp fall in operating profit in 2019 in the face of offensives from e-commerce companies.
E-Mart announced on Feb. 5 that its operating profit stood at 150.7 billion won in 2019 on a consolidated basis, down 67.4 percent from the previous year. Its sales increased 10.7 percent to 18.17 trillion won, but its net profit plummeted 53 percent to 223.8 billion won.
E-Mart's operating profit, including that of hypermarkets and E-Traders, fell by 51 percent on year to 251.1 billion won on a non-consolidated basis. Its net sales and net profit came in at 13.15 trillion won and 291.1 billion won, respectively.
“Amid a slump of large retail stores, we spent more money to promote Ssg.com to cope with fiercer competition in the online shopping industry. And the shutdown of some specialized stores and the implementation of a store restructuring program in the second half of the year cut down on our profits,” an E-Mart representative said.