Wednesday, April 26, 2017

"I do not think so ..." Opened Lotte Mart Seoul Yang

Lotte Mart opened its own store in Yeongdeungpo, the largest distribution battleground in the Southwest of Seoul. The Lotte Mart Seoul Yangpyeong store opened on March 26th with a floor space of 13,775㎡ in Yangpyeong-dong, Yeongdeungpo-gu, Seoul, and 2 floors underground ~ 8 floors above ground. It is the first time since the opening of Guro shop in June 2005 that it opened as a stand-alone store instead of a complex mall.

The Lotte Mart Seoul Yangpyeong store, which will become the 16th store in Seoul, is the place where the largest number of marts in Seoul is located, and about 10 large marts are located in a radius of 3 km. Within the radius of 120m, there are Homeplus Yeongdeungpo, Emart Yeongdeungpo, and Bigmarket Yeongdeungpo stores within the radius of 1.5km, including Costco Yang, a member-store type discount store.

Lotte Mart opened a press conference with a pre-opening meeting on the day and said, "I focused on 'shared value' beyond the existing distribution space that focuses on maximizing product sales and sales space."

Lotte Mart has created a place where customers can relax and enjoy the first floor of the operating Golden Zone. This space has been conceptualized as a "forest in the heart of the city." It has a communication space surrounded by trees and vines, and a time-sharing stage close to the staircase. Through this, it plans to "become a store where customers can relax and enjoy, which was never seen before."


- The goal is to attract an average of 7,000 customers a day. Which level compared to other stores.

△ Sincheon Baek, Managing Officer = Average of about 5000 visitors per day should be regarded as general level. If you look at it, you can see that you are seeing 30-40% more of the average store. It has a minimum goal of 7,000 people and it is looking at 10,000 people. I would like to say that this is not a space for simple sales. It can be a place for resting at lunch time. Even if it is not in the 30 ~ 40s, it will be a space for children and young people to relax and enjoy. It is expected that the number of visitors will be more than the actual number of passengers.

◇ What is your sales goal this year?

Hsinchu Baek, managing director, is expected to average around 10 billion won a month. If you start from May, you have 8 months remaining, and you are about 80 billion won. In terms of annual sales, it is more than 100 billion won.

◇ How many parking spaces are there?

Hsinchu Baekgang = Park numbers are close to 700, and I see about 100 million per 6 cars. At present, more than 10 billion can be achieved. Costco's customers are lining up from the morning until the end of the day so that they can not fill in the parking lot. I wish we did too.

◇ Are you planning to continue opening stores of differentiated stores?

Seo Hyeon-seon, Managing Director = We will evolve into a fourth-generation store and evolve the store with the aim of "value for share." It is not only a place for business, but also a place for communication and talk. (Customers) will be able to have benefits in going out and going to a place to go shopping. There are 17 own brands, but we plan to continue to excavate the growth of silver. We will create various PB brands and store them in shops.

Hsinchu Baek, Managing Director = The domestic discount store business and social structure change have already been in decline since the competition has been intensified due to channel diversification. Japan and other similar cases. We are constantly developing a new format with a different value from existing discount stores. This is not all, but the distribution store will evolve in the future. It will change and evolve now, not all of it. Change and innovation are necessary to keep the business running. This change seems to be a necessary phenomenon.

◇ Distribution Why do you have a reason to open the battlefield?

Hsinchu Baek, managing director of Yeongdeungpo-gu, Yangcheon-gu, and Guro-gu, Seoul, will be about 1.5 million. Currently, about 10 discount stores sell about 100 billion won. When we look at 1.5 million population discount store Kepa, if you do your own Kepa calculation, it will be about 112 billion. So far, we have estimated that there are about 10 billion numbers, and it is considered to be a significant number. Another concept is formatting, and there are already many commercials, and because Kepa is there, it seems that it is open enough because it is enough target number.

Seo Hyun-sun, Managing Director = We are focusing more on competition that is not visible than numbers. The meaning of offline competition is disappearing. Who is spending time and who is taking the time of the customer. It is a good point to think about how you can attract customers' interest and return the interest to what value, since it is no use if you do not come here to enjoy shopping here. As a company that communicates with customers, we decided to open our Golden Zone, the first floor, to customers, because we decided that customers could come to expect more. I think there is a possibility.

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