Magazines Archives - 2007 October

Lotte ventures into Moscow, plans European expansion
Story 9

SOUTH KOREAN retail giant Lotte Shopping opened its first department store, Lotte Plaza, in Moscow, Russia, last September, thus becoming the first Asian department store to venture into the European retail scene. Located at the heart of downtown Moscow, the US$200-million investment houses over 100 brands, offering home-grown brands from South Korea, alongside international luxury brands.

Positioned as a “Korean-style one-stop” shop, Lotte Plaza has set itself apart from Russian competition by means of its aggressive marketing strategies, classifying customers into categories based on their spending at the store. In addition, the design of the building breaks away from the conventional Gothic and antique interior of Russian department stores, with seven-storey modern concept and each floor a reflection of the product catego- ries that are on display.

Complete with valet-parking services, and exclusive lounge and membership privileges, the store aims to provide customers with programmes and services that other retailers in Moscow have not yet tapped into.

Said Chul Woo Lee, president and CEO of Lotte Shopping: “We had to do a lot of market studies to ensure we succeed in this market, and we are confident we will succeed because we will be providing globally competitive brands and cuttingedge services; services that are unique to Korea and not ever experienced by Russians.”

“The opening of our department store in Moscow marks our first step towards becoming one of the top 10 global retailers,” Shin Dong-bin, executive vice-chairman of Lotte Group, told local media. Lotte Shopping currently ranks 15 on the global retail scene, with over 20 stores in major cities across South Korea.

By year-end, the group expects revenues of the Moscow store to reach about 58 billion Won (US$62.3 million), breaking even within the next three years. Should things go as planned, the group will open another store in St Petersburg, Russia’s second largest city. Lotte Shopping also plans to open its first branch in Beijing, China, by January next year, ahead of the 2008 Beijing Olympics, and its hypermarket chain, Lotte Mart, in Vietnam in the same year.