[Alpha Biz= Ellie Kim] Lotte Hi-Mart reported a wider operating loss for the first quarter, citing sluggish appliance demand and a downturn in the housing market, the company said in a regulatory filing on May 7.

Operating loss reached KRW 14.8 billion, expanding by KRW 3.7 billion year-on-year. Revenue fell 6.1% to KRW 496.9 billion, while net loss widened by KRW 6.6 billion to KRW 20.4 billion.

The company attributed the weaker performance to a prolonged slowdown in the home appliance market and reduced residential mobility amid a cooling real estate sector.

Lotte Hi-Mart said it expects these unfavorable conditions to persist for the time being and plans to respond by overhauling its product sales strategy and creating new demand to strengthen its long-term growth foundation.

As part of this strategy, the company is restructuring its product portfolio by focusing on both premium AI-powered appliances from leading brands and more affordable offerings from overseas brands. It is also expanding exclusive product lines, including Twinbird, Unox Casa, and Mirai speakers, to enhance differentiation.

In addition, Lotte Hi-Mart is rolling out new initiatives to drive demand, such as its “Hi-Mart Certified Reuse” program, which refurbishes and resells used appliances with quality checks and warranty services. The company is also targeting single- and two-person households through standalone stores for its private label brand PLUX.

The retailer plans to expand large-scale hub stores like its recently renovated Jamsil branch and enhance its e-commerce platform by introducing AI shopping agents to improve product discovery and the overall customer experience.

 

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