E-MART said on the 13th that first-quarter operating profit rose 11.9% from a year earlier to 178.3 billion won. On a quarterly basis, it was the best performance in 14 years since the first quarter of 2012 (190.5 billion won). Revenue for the same period fell 1.3% to 7.1234 trillion won.
On a standalone basis, revenue rose 1.9% to 4.7152 trillion won, and operating profit increased 9.7% to 146.3 billion won. The company said that its strategy to strengthen its core business competitiveness—focused on customer-centric price, product, and space innovation—drove both sales growth and improved profitability.
E-MART's store renewals, including Starfield Market, were effective. Sales at the Ilsan store, which was revamped as Starfield Market, jumped 75.1% from a year earlier, while the Dongtan and Gyeongsan stores rose 12.1% and 18.5%, respectively. At the Ilsan store, the number of visiting customers increased 104.3%.
Traders also posted record quarterly revenue. First-quarter revenue rose 9.7% from a year earlier to 1.0601 trillion won, and operating profit increased 12.4% to 47.8 billion won. In a high inflation environment, competitiveness in bulk, value-for-money products translated into positive customer response.
Sales of Traders' private brand (PB) "T-Standard" increased 40% from a year earlier. Sales at T-Cafe, which offers restaurant-style foods at reasonable prices, also rose 24%. The number of visiting customers was tallied up 3%.
Major subsidiaries also showed solid results. Josun Hotels and Resorts, helped by an increase in tourists, posted revenue of 168.5 billion won, up 2.4% from a year earlier. Operating profit rose 116.7% to 3.9 billion won. SCK Company, boosted by new store openings, recorded revenue of 817.9 billion won, up 7.3%.
While Gmarket continued to book an operating loss, gross merchandise value (GMV) rebounded for the first time in four years, led by core categories such as food, daily necessities, and digital appliances. In March, GMV and average spending per customer each rose 12% and 10%, and direct transaction value via the application (app) and web increased 13%. GMV and average spending per customer also rose 10% and 12%, respectively, last month.
An E-MART official said, "As the innovative paradigm shift emphasized in the New Year's address by Chairman Chung Yong-jin has begun to show results from the first quarter, we will accelerate into new future businesses such as building an artificial intelligence (AI) data center, based on the growth of existing businesses."
Chairman Chung Yong-jin has stressed since late last year that the rapidly changing market environment must be met with a "paradigm shift." Chung said, "The group's innovative decisions over the past two to three years were preparation to grow again," adding, "All preparations are complete, so we will soar high this year."