Business · Companies · 1 hr ago
South Korean Retailers Face Slower Department Store Growth in Third Quarter
South Korean retailers are expected to post mixed results in the third quarter.
Lotte Shopping, Shinsegae and Hyundai Department Store are forecast to increase operating profit from a year earlier, but department store sales growth is expected to ease from the first half.
Slower luxury sales and reduced spending by foreign visitors are among the pressures, as the stronger won has lowered their purchasing power.
A weaker stock market has also reduced some local shoppers’ spending capacity, although fashion sales picked up in September.
Large supermarkets may gain from Homeplus store restructuring, an early Chuseok holiday and comparison with weak sales a year earlier.
That boost may fade in the fourth quarter, when the holiday timing and low-base effects are expected to lessen.
South Korean department store earnings are expected to keep rising in the third quarter, but more slowly than in the first half of the year.
Slower growth in luxury sales and reduced spending by foreign tourists are among the factors weighing on department stores.
Analysts forecast third-quarter operating profit increases at Lotte Shopping, Shinsegae and Hyundai Department Store compared with a year earlier.
Large discount stores are expected to benefit from Homeplus store restructuring, an early Chuseok holiday and comparison with weak results a year earlier.
Supermarket sales are also expected to grow, while convenience-store sales growth is forecast to remain limited.
- Who
- South Korean department store operators, including Lotte Shopping, Shinsegae and Hyundai Department Store.
- What
- Department store earnings are expected to rise in the third quarter, but their growth is forecast to slow. Large discount stores and supermarkets are expected to perform well.
- When
- The third quarter of 2026.
- Where
- South Korea.
- Why
- Luxury sales growth and foreign tourists’ spending contribution slowed, while a stronger won and weaker stock-market gains were cited as factors. Large discount stores are expected to benefit from Homeplus restructuring, an early Chuseok and a low comparison base.
This story does not have two clearly opposing sides.
Department store earnings growth accelerated.
The won began strengthening, which analysts said reduced foreign shoppers’ purchasing power.
Luxury sales growth and foreign shoppers’ contribution to department store sales reportedly eased.
Department store earnings are forecast to rise year on year, but at a slower pace than in the first half.
Analysts said large discount-store growth could slow as base effects weaken and the impact of Chuseok timing disappears.
- Lotte Shopping operating profit forecast
- 178.8 billion won, up 37.05% year on year
- Shinsegae operating profit forecast
- 176.3 billion won, up 76.7% year on year
- Hyundai Department Store operating profit forecast
- 89.4 billion won, up 23% year on year
- Lotte discount stores’ same-store growth forecast
- About 20%
- E-Mart discount stores and Traders’ same-store growth forecast
- About 10% each