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Lotte Department Store Sogong-dong main branch. (Photo=Lotte Shopping) |
[Alpha Biz= Reporter Kim Sangjin] According to the investment banking (IB) industry on the 22nd, Lotte Shopping recently selected Cushman & Wakefield as the advisor for the potential sale of the Centum City store. The expected sale price is estimated to be between 200 billion to 300 billion KRW.
The Lotte Department Store in Centum City, which opened in 2007, spans 7 underground floors and 10 above-ground floors. It gained fame by attracting luxury international brands like Louis Vuitton, Dior, Burberry, and Bulgari. However, after the opening of the Shinsegae Centum City store nearby in 2009, the Lotte store suffered a significant setback. Many of the luxury brands it had hosted moved to Shinsegae, which caused a loss of market share, and sales began to decline.
The store's sales, which were once over 3 trillion KRW, dropped to 1.334 trillion KRW last year, placing it 29th out of the 32 stores operated by Lotte Department Store in terms of revenue.
In response, Lotte Department Store applied to the city of Busan in June of last year for a change in zoning plans to allow for the conversion of vacant spaces into indoor sports facilities, shared offices, and more. In July, they also introduced the popular youth fashion brand Musinsa Standard on the first floor to seek new growth opportunities.
Lotte currently operates four stores in Busan, including the Centum City store, Busan Main Store, Dongnae Store, and Gwangbok Store.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
