E-MART is focusing on Uijeongbu, Gyeonggi, as one pillar of its business strategy this year. As it moves to strengthen its wholesale (bulk and distribution) institutional sector with a new Traders warehouse club slated to open, the issue has become entangled with asset and equity cleanups tied to the split within Shinsegae Group.
According to the industry on the 13th, E-MART decided to keep the focus on strengthening its core business competitiveness this year, following last year. The strategy has two main tracks: expanding the wholesale business centered on Traders and improving legacy hypermarkets through renovations. Uijeongbu is being mentioned as a representative candidate for a new Traders location.
The Uijeongbu Traders, aiming to open at the end of this year, has the locational advantage of serving as a northern Seoul metropolitan hub. The area is considered relatively less competitive among hypermarkets, and the plan is to capture demand from the high-density northeastern Seoul area as well as the outer suburbs of the metro area, including northern Gyeonggi.
In the retail industry, warehouse clubs like Traders are increasingly establishing themselves as a channel replacing hypermarkets. With the prolonged slump in domestic demand, more consumers are seeking to buy large-quantity products in bundled units at lower prices, analysts say.
Last year, Traders was the key institutional sector driving E-MART's profitability improvement. In the third quarter, Traders' sales topped 1 trillion won for the first time. Cumulative operating profit for the first through third quarters was 112.7 billion won, up 26.9% from a year earlier.
Starting with Uijeongbu Traders, E-MART plans to open in the western Incheon area and inside Starfield Changwon in 2027. Currently, E-MART Traders stores are clustered mainly in southern Gyeonggi. Including the Magok store (Feb.) and the Guwol store (Sept.) that opened last year, the total number of stores is 24.
Another reason Uijeongbu is drawing attention is the equity cleanup issue between E-MART and Shinsegae Co. Shinsegae Group announced in 2024 that it would split the two companies into separate affiliates and is carrying out related work. Shinsegae Uijeongbu Station is the last equity jointly held with SSG.com.
Shinsegae Uijeongbu Station was established on Dec. 10, 2002, under the Act on the Utilization of National Railroad Property, with Shinsegae Group and the Korea Railroad Corporation (KORAIL) as the principals, for the purpose of constructing and operating a privately funded station. Shinsegae Co. is the largest shareholder with 27.55%, and Gwangju Shinsegae, a subsidiary of Shinsegae Co., holds 25% equity. Shinsegae Engineering & Construction, a subsidiary of E-MART, has a 19.9% equity stake.
Inside and outside the industry, there is speculation that within this year, the equity in Shinsegae Uijeongbu Station will go to Shinsegae Co., while SSG.com will go to E-MART, which also owns the e-commerce company Gmarket. Shinsegae Group must unwind the two companies' equity to undergo the Korea Fair Trade Commission's review for affiliate separation.