Lotte Himart said on the 7th that it posted an operating loss of 14.8 billion won in the first quarter. The loss widened from a year earlier due to a slump in the appliance market and fewer residential moves stemming from a weak real estate market.
Revenue fell 6.1% on-year to 496.9 billion won. Net loss for the period came to 20.4 billion won, widening by 6.6 billion won.
The company said business conditions remain weak as the moving and new-occupancy market, which is closely tied to appliance demand, has slowed. It expects this trend to continue through the first half and plans to strengthen its response strategy.
Lotte Himart is focusing on restructuring by product brand and creating new demand. It will expand a lineup of premium products centered on artificial intelligence (AI), while bringing in overseas brands to bolster the mid- to low-priced range.
It will also expand the "Himart Certified Used Reuse" business, which buys customers' used appliances, sells them after inspection and reconditioning, and then provides a repair warranty. In July, it will introduce a standalone store for its private brand (PB) PLUX targeting one- to two-person households.
It also plans to actively nurture large hub stores such as the Jamsil location, which reopened after a renewal in February. The Jamsil store is operated as a hybrid outlet that combines used appliances, PB, and experiential categories.
A Lotte Himart official said, "Based on the success of the Jamsil store, which has continued to grow after its renewal, we plan to keep renewing regional hub stores such as the World Tower location."
In e-commerce, it will enhance shopping features using AI. Through HAVI, an AI shopping agent launched recently, it will strengthen product search and recommendation functions, and in the second half it plans to expand into personalized services.