Emart24 on the 30th announced a "coexistence declaration" aimed at boosting franchise owners' real revenue and promoting joint growth with headquarters. The key is to switch the monthly fee system for low-revenue stores to a royalty model.
The measure targets franchise owners of individually leased stores who are faithfully fulfilling their contracts. Eligible owners can switch for the remaining contract period from the fixed monthly fee (1.6 million won) to a gross profit-sharing model (owner 71%, headquarters 29%). For example, a store with a monthly gross profit of 4 million won would pay only 1.16 million won to headquarters under the royalty model, yielding about a 28% expense reduction compared with the current system. Applications are open from on the 3rd of next month through the end of the year.
Emart24 is also accelerating efforts to strengthen product competitiveness. Next year, it plans to launch 600 trendy and differentiated flagship products targeting consumers in their 20s to 40s. Next month, new private-label (PL) "ye!low" products in key categories such as coffee and lunchboxes will make their debut.
Emart24 will also work to expand synergies through collaboration with group affiliates, including Shinsegae L&B, Shinsegae Food, and Josun Hotel. Two "Attention-Grabbing Burgers" that embody Shinsegae Food's cooking know-how ranked No. 1 and No. 2 in the burger category immediately after launch, and recently, in collaboration with Seoul National University Bapsnu, it introduced the "Yak-kong Soymilk Bread" series.
Starting next year, Emart24 also plans to implement a comprehensive coexistence agreement that includes: ▲ 100% support for disposal expense of strategic products ▲ expanded incentives for stores introducing new products ▲ strengthened support for store damage insurance.
Chief Executive Choi Jin-il of Emart24 said, "Despite the managerial burden on headquarters, this coexistence agreement was a bold decision made with top priority on improving franchise owners' revenue," adding, "We will continue to pursue tangible results and sustainable growth through all-out efforts, including strengthening product competitiveness, innovating store spaces, and supporting franchise operations."