Lotte Department Store Sogong-dong main branch. (Photo=Lotte Shopping)

 

 

[Alpha Biz= Kim Jisun] Lotte Shopping is preparing to sell half of its 20% stake in Lotte Card, aiming to raise at least KRW 200 billion as it seeks to bolster liquidity amid sluggish asset sales. According to investment banking sources on June 17, Lotte Shopping will participate in MBK Partners' planned sale of Lotte Card by offering 10% of its stake, though the final decision will depend on bidding conditions.



Lotte Shopping retains a tag-along right through a 2019 shareholder agreement and is reportedly looking to retain the remaining 10% to preserve synergies in customer data, marketing, and sales channels across its retail businesses, including Lotte Department Store, Lotte Mart, and e-commerce arm Lotte ON.



The move comes as efforts to sell or repurpose underperforming department stores—such as the Centum City branch—have stalled. Complicating matters further, the market is being saturated by the sale of Homeplus assets, which may dampen demand for Lotte properties.



Meanwhile, Lotte is investing KRW 1 trillion through 2030 to build six fulfillment centers featuring the Ocado smart logistics platform, and continues to renovate department stores and rebrand shopping malls under the Time Villas concept. These capital-intensive plans highlight the need for diversified funding sources.



Lotte Card’s buyer stands to gain access to Lotte’s vast retail ecosystem and consumer data network, including its L.POINT loyalty program. The card issuer's customer base—largely individuals with annual incomes over KRW 60 million—also adds to its appeal as a competitive asset.

 

 

 

 

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