According to the second-quarter business results report of Lotte Shopping, a subsidiary specializing in retail real estate and hypermarkets of Lotte Group (South Korea), Vietnam is a foreign market with sustainable growth in the hypermarket segment in the first half of this year. Lotte Mart's revenue in Vietnam reached approximately 214 billion won, equivalent to 4,054 billion VND, a 7% increase compared to the first half of last year.

Operating profit reached 21 billion won, nearly 398 billion VND, marking a 23.5% growth. Earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at 31 billion won, about 587 billion VND, 19% higher than the same period last year. On average, the Lotte Mart chain in Vietnam earned over 3.2 billion VND per day.

Lotte's overseas hypermarket segment includes only Vietnam and Indonesia. While the Indonesian market faced challenges due to the Lebaran holiday, Vietnam played a crucial role. Although Vietnam's revenue contribution was less than 65% of the total, its operating profit and EBITDA were double and 1.5 times higher than Indonesia's, respectively.

Inside a supermarket in Hanoi. Photo: Lotte Mart

Inside a supermarket in Hanoi. Photo: Lotte Mart

Lotte's hypermarket segment operates under the Lotte Mart brand. Their overseas expansion began in 2008, first in Indonesia (November) and then in Vietnam (December). Currently, this retail chain has 15 supermarkets in Vietnam, mainly located in southern provinces and cities.

Lotte Mart's current revenue is relatively modest compared to other retail chains, especially domestic players. In the first half of the year, WinCommerce, the operator of the Winmart supermarket chain and Win store models under Masan Group (MSN), achieved 17,915 billion VND, an increase of over 13%. Bach Hoa Xanh, the food and FMCG store chain under Mobile World Investment Corporation (MWG), reported revenue of nearly 22,600 billion VND, a 16% increase.

However, both recorded relatively low-profit margins. Bach Hoa Xanh earned about 205 billion VND in the first half of the year, while WinCommerce reported a profit of around 68 billion VND.

In addition to hypermarkets, Lotte is also performing well in the retail real estate sector in Vietnam with two projects: Lotte Mall Tay Ho and Lotte Center, both located in Hanoi. Lotte Shopping reported increased sales at all stores, with Lotte Mall Tay Ho experiencing a surge of over 25%.

Total retail real estate revenue in Vietnam reached 50 billion won, equivalent to 947 billion VND, an increase of over 28% compared to the same period. Operating profit reached 2 billion won, an improvement from the 6 billion VND loss in the same period last year. Lotte Mall Tay Ho alone contributed 0.7 billion won, equivalent to over 13 billion VND, to this profit.

Tat Dat