Shinsegae's E-Mart has decided to close several unprofitable stores to improve the company's profitability.
Profitability driving decisions
Having exited China earlier this year, E-Mart is also consolidating its operations at home to boost efficiency. Shinsegae has reportedly sold its Deoki-dong branch in Ilsan, Gyeonggi Province. Last year, the company has sold stores in Hakseong in Ulsan, Bupyeong in Incheon and Siji in Daegu. It also sold land in Hanam and Pyeongtaek, Gyeonggi Province.
SSG Food Market also set for closures
E-Mart's experimental premium grocery format, SSG Food Market, is also set for closures. The Mokdong store in Seoul closed in January and the Bupyeong and Siji branches are also expected to close in the first half of this year. With this in mind, the Shinsegae's convenience format, E-Mart 24, will have an even more important role in helping it sustain growth in South Korea.
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