Although E-Mart strengthened the competitiveness of its core businesses including E-Mart and Trader’s in the second quarter of this year, it recorded an operating loss on a consolidated basis due to controversy over Starbucks Korea’s “Tank Day” in May.
E-Mart disclosed on the 13th that consolidated net sales for the second quarter amounted to 6.915 trillion won, down 1.8% from the same period last year. This figure includes E-Mart Inc., along with its subsidiaries Starbucks Korea, Shinsegae Construction, Shinsegae Food, Chosun Hotel & Resort, E-Mart24, and SSG.com. The company posted an operating loss of 43 billion won, marking a shift to deficit.
For the first half of the year, consolidated net sales reached 14.0385 trillion won, with operating profit at 135.3 billion won. These figures represent decreases of 1.5% and 45.6 billion won, respectively, compared to the same period last year.
On a separate basis, total sales for E-Mart, warehouse-style mart Trader’s, and hypermarket Everyday in the second quarter totaled 4.4428 trillion won, up 3.5% from the prior-year period. Operating profit rose 64% to 25.6 billion won. For the first half of the year, sales were 9.1581 trillion won and operating profit was 171.9 billion won, reflecting increases of 2.7% and 15.4%, respectively.
By business segment, Trader’s recorded total sales of 992.7 billion won and operating profit of 34.6 billion won in the second quarter, up 10.3% and 12.7% year-on-year, respectively. Sales of its private brand “T Standard” increased by 24.2%, while “T Cafe” sales rose by 13.9%. The number of visiting customers grew by 3.7%. According to the company, growth was driven by a product lineup focused on large-volume items, exclusive products, and private brands.
Everyday’s sales reached 389.1 billion won, up 7.2% from the prior-year period. Operating profit increased by 51.7% to 8.1 billion won. E-Mart attributed its performance to expanding new franchise models, enhancing shopping convenience through online commerce and nearby delivery services, and achieving results through space innovation. Specifically, three stores undergoing renovation centered on Starfield Market saw sales and customer numbers rise by 79.5% and 42.4%, respectively, compared to the same period last year, thanks to strengthened stay-type content.
Among major subsidiaries, Chosun Hotel & Resort showed notable improvement in profitability. Driven by increased tourist arrivals leading to higher occupancy rates and improved average spending per guest, its second-quarter operating profit reached 10.1 billion won, up 41.1% year-on-year. Net sales were 188.2 billion won, a slight increase of 0.3%.
The consolidated operating loss was influenced by underperformance among subsidiaries. SCK Company, which operates Starbucks Korea, reported net sales of 747.3 billion won, down 6.1%, and an operating loss of 18.4 billion won—a direct reflection of the fallout from the “Tank Day” marketing controversy that erupted in May. SSG.com recorded sales of 310.5 billion won, down 11.4%, with an operating loss of 29.5 billion won. Shinsegae Construction saw its deficit widen by 39.7 billion won. In contrast, E-Mart24 posted net sales of 532.5 billion won, up 0.1%. Its operating loss improved to 2.1 billion won through store efficiency measures, reducing the loss from 2.3 billion won.
E-Mart plans to strengthen its core business competitiveness in the second half of the year. It will enhance key products and private brands by channel, expand renovations at Starfield Market stores, and open new locations. For Trader’s, it will launch a new signage system and fully commence an integrated online-offline Retail Media Network (RMN) business. The company also aims to identify new revenue streams by expanding the rollout of its uniform-price brand Wow Shop and linking it with existing retail operations.
SCK Company will focus on stabilization based on restoring trust. It plans to restructure its pre-management processes and expand social contribution activities to improve its public image.
In the online sector, SSG.com will strengthen its grocery competitiveness and concentrate on regaining profitability. It aims to enhance product competitiveness by linking with offline stores and further develop membership-based benefits.
An E-Mart representative stated, “In the second half of the year, we will continue our initiatives in pricing, products, and space innovation to bolster core business competitiveness and market dominance while identifying new business opportunities to solidify our foundation for medium- to long-term growth.”
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