Vice Chairman Kim Sang-hyun, the General Representative of Lotte Distribution Group. /Courtesy of Lotte Distribution Group

Kim Sang-hyun, vice chairman and general representative of Lotte's retail division, said on the 22nd, "We will closely analyze market changes and examine customer needs to ensure that we achieve a turnaround this year." He also urged employees to embrace the mindset of challenge, courage, change, and opportunity, referred to as "4C (Challenge, Courage, Change, Chance Taking)."

On the same day, Vice Chairman Kim noted in a CEO letter posted on Lotte's internal intranet that "there were limitations to overall growth in the retail division last year, and difficulties in some business units persist."

Vice Chairman Kim stated that the Lotte retail division plans to push forward with its "Transformation 2.0" strategy, initiated last year. He said, "In 2022, we announced ‘Transformation 1.0’ to establish a foundation for continuous growth and investment through financial restructuring and improvement, and we started a new journey with ‘Transformation 2.0’ last year, implementing key strategies to become the ‘first shopping destination for customers.’"

He emphasized that this year should be the year when the Lotte retail division's growth strategy bears fruit. The growth strategies he presented for this year include ▲ strengthening merchandise planning (MD) beyond customer expectations with a range of new products and differentiated services ▲ expanding overseas business based on the rapidly growing Southeast Asian market ▲ initiating new businesses for revenue generation and introducing new business models utilizing artificial intelligence (AI).

Vice Chairman Kim told employees, "To execute these strategies and achieve our goals, we must always prioritize the customer and become an organization that knows our customers better than competitors," and added, "We should always maintain curiosity and have a mindset of continuous improvement by asking ‘why’ instead of being satisfied with the current state."

Additionally, Vice Chairman Kim announced, "To create innovation in a challenging environment, I ask all employees in the retail division this year to translate the spirit of ‘4C’ into action," presenting ‘4C’ as the mindset employees should have this year. The components of 4C include ▲ a spirit of challenge to actively approach the rapidly changing management environment ▲ the courage to innovate ▲ a willingness not to hesitate with change ▲ constant efforts to seize opportunities and maintain a proactive attitude in preparing ahead of the market.

In closing, Vice Chairman Kim expressed his hope that through the mindset of "One Team, One Mind, One Mission," they can collectively achieve abundant results.