Magazines Archives - 2008 January

SOUTH KOREAN Lotte Group has announced plans to acquire a discount retailer to strengthen its foothold in China’s growing retail market. The group stated that it would invest €57.6 million (US$82.90 million) for a 49% stake in CTA Makro, a joint-venture company of China Trade Association Property Corp Ltd and Dutch company SHV Holdings NV, which operates about seven discount stores in China.

Lotte believes its foray into China is timely, as the market is expected to “show explosive growth before and after the 2008 Beijing Olympics”.

In addition to the takeover, the Korean retailer will establish a new discount store this year in Beijing.

The group also announced that it would be setting up its first department store by May this year, with an area of 83,600sqm in a high-end shopping centre in Wangfujing, before looking at
other cities such as Shanghai, Jilin, Liaoning and Heilongjiang.

In addition, Lotte is expanding into Vietnam with the group’s first mart in Ho Chi Minh City by year-end. Last September, the group opened its first overseas department store in Moscow, Russia.