Emart24 said on the 4th that the co-prosperity declaration released last year is translating into actual revenue improvement for store operators.
Emart24 said that an analysis of one-month revenue at 19 stores that recently switched to the royalty type (gross profit sharing) showed an average monthly revenue increase of 633,000 won per store compared with before the switch. Some stores saw revenue rise by up to 1.39 million won.
The royalty type shifts the store revenue structure to a sales-linked model to share risk. Gross profit is distributed 71% to the store operator and 29% to headquarters. So far, 377 stores have applied to switch to the royalty model, and 65 of them have completed the switch.
Earlier, Emart24 granted store operators who faithfully fulfilled their potential contracts among individually leased stores that pay a 1.6 million won monthly fee the option to switch to the royalty type even during the contract period.
When switching to the royalty type, store operators' revenue increases compared with before, and headquarters must accept a revenue decrease compared with the existing monthly fee, but Emart24 said it moved to provide support to promote co-prosperity with store operators.
An Emart24 official said, "Revenue at stores that switched to the royalty model is improving, and positive changes are being confirmed in the field," adding, "We plan to strengthen product competitiveness along with co-prosperity programs for store operators so that headquarters and store operators can grow together."