South Korea’s Emart, owned by Shinsegae, will close the store chain completely to focus on big-box retail business.
Part of the restructuring plan
Following the previous announcement of closing the Pierrot store in Seoul’s Myeongdong shopping district, Emart will shut down the remaining six branches completely this year.
Opened in 2018, Pierrot Shopping is a virtual clone of Japan’s quirky Don Quijote, aimed at attracting younger customers. However, the chain struggled to gain recognition among shoppers.
The company commented that the decision is part of the restructuring plan to focus on its big-box retail business which has been under pressure from ecommerce.
Luring customers back to the main business
Under the leadership of the new CEO, Emart’s priority is to get shoppers back to its hypermarkets and supermarkets.
Its main strategy is to fix the basics by keeping the price low and focusing on fresh food category.
It also plans to expand own label products. Its private label range, No Brand, has proved successful in Southeast Asia, selling in 40 countries. Next year, eight No Brand stores are planned overseas, adding to the existing ones in the Philippines.
Retail Analysis Asia