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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Sangjin] Lotte Duty Free, which has been experiencing deteriorating performance due to the slump in duty-free sales, will enter emergency management next month.
Lotte Duty Free announced on the 28th that it will enter an emergency management system next month and is considering various measures such as voluntary retirement and organizational downsizing.
The duty-free chain has recorded consecutive losses for three quarters from the third quarter of last year to the first quarter of this year. The accumulated loss amounted to KRW 53.7 billion, including an operating loss of KRW 28 billion in the first quarter.
Although there has been an increase in domestic and international tourists after the pandemic, the recovery of Chinese group tourists, who are significant for shopping purposes, has not occurred, leading to continued poor performance. The situation is exacerbated by the high exchange rate, which is also affecting domestic sales.
In response, Lotte Duty Free is considering gradual workforce restructuring, including voluntary retirement. It is also exploring ways to cut costs through organizational downsizing, adjusting marketing expenses, and revising commissions for attracting customers.
In the long term, Lotte Duty Free is also considering streamlining operations by restructuring underperforming stores.
Currently, Lotte Duty Free operates a total of 21 stores, including 8 downtown duty-free stores and 13 airport duty-free stores.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
