Muji, the Japanese lifestyle brand invested in by Lotte Shopping, is accelerating a rebound in its Korea business by pushing Korea-only foods and daily sundries. Centered on K-foods such as kimchi, side dishes, and meal kits, the strategy is said to be driving performance improvements by targeting not only domestic customers but also foreign tourists.
Muji is a Japanese lifestyle brand founded in 1980 and entered Korea in 2004 when Ryohin Keikaku in Japan and Lotte Corporation established a joint venture (Muji Korea). Lotte Shopping fully acquired Lotte Corporation's equity at the end of 2022.
According to related industry sources on the 2nd, Muji's performance has been recovering at a faster pace recently. Sales for Muji's 2025 fiscal year (Sept. 1, 2024–Aug. 31, 2025) reached 217.6 billion won, up 20% from a year earlier, while operating profit rose 66.7% to 12.5 billion won. Net profit also turned to a surplus of 3.8 billion won. In the previous fiscal year, sales rose 20% and operating profit jumped 307%, but the company was still in the red.
This growth stems from a change in product strategy. Muji is overhauling its Korea business, which had focused on apparel, by expanding into food and daily sundries. While apparel sales posted only single-digit growth last year, sales of food and daily sundries each rose by nearly 60% and 30%, respectively, driving overall results.
In particular, demand from foreign visitors is being captured around food. In downtown stores such as in Seoul's Gangnam, Korea-only ready-to-eat meals and desserts are displayed front and center, making the shops a noted stop for souvenir shopping. Kimchi and side dishes, as well as meal kits such as perilla oil buckwheat noodles, are among the most popular items.
Most of the foods are private label (PB) products, often developed in collaboration with midsize and small domestic companies. PB items first planned and launched by Muji in Korea in 2022 were fruit chips and corn snacks. Many come in small packages for easy storage, and the lower price burden appears to be fueling their popularity.
Lotte Shopping carried out a paid-in capital increase of about 20 billion won for Muji in Sept. last year. The move was based on the view that the company would exit losses and speed up normalization. Including about 30 billion won in additional investment from Ryohin Keikaku in Japan, a total of 50 billion won was injected.
Muji plans to continue strengthening product competitiveness with the investment funds while also expanding the number of stores. The current 42 stores are slated to grow to 150 by 2030. The company is increasing not only downtown Seoul locations but also suburban stores in the greater Seoul area and in regional cities.
However, a variable is that the broader retail industry is also targeting the lifestyle market. A key competitor is Shinsegae's "Jaju" (JAJU). Shinsegae Casa, which acquired Jaju from Shinsegae International at the end of last year, has begun in earnest to expand its business scope from furniture to household goods and fashion.
Ultra-low-price household goods chains are steadily expanding their influence, led by Daiso. While Daiso is making strides with a single-price strategy, E-MART has also joined the price competition by unveiling a new PB brand, "5K PRICE," which offers all items for 5,000 won or less.
CJ Olive Young is expanding its product lineup from cosmetics to food and household goods. Musinsa is also absorbing demand in the related market through Musinsa Standard and 29CM. Since last year, 29CM has rebranded its home category as "29Home" and expanded the business, and it has continued to open offline stores in Seongsu-dong.