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Shinsegae Group Chairman Chung Yong-jin. (Photo=Shinsegae Group) |
[Alpha Biz= Reporter Kim Jisun] Shinsegae L&B is undergoing a significant restructuring to enhance performance after recording a loss last year. The company plans to streamline unprofitable divisions and focus on its core wine business.
Since Song Hyun-seok took on the dual role as CEO of Shinsegae Food in September last year, efforts have been made to improve profitability and strengthen the competitive edge of its alcohol distribution business.
The company is prioritizing the upscale transformation of its wine specialty store, "Wine & More." This includes expanding key locations like the flagship store in Cheongdam, launching customized customer services, and emphasizing high-priced wine sales. Conversely, unprofitable locations in Busan, Bucheon, and Gwangmyeong will be closed by the end of the year. Earlier in the year, stores in Dasan, Gijang, and Dongtan were also shut down, bringing the total number of Wine & More outlets down from a peak of 51 in 2022 to 42 by year-end.
Shinsegae L&B is also considering expanding Wine & More into a premium lifestyle brand. Following the launch of the industry’s first eco-friendly wine packaging, the company plans to develop and sell cosmetics under the "Wine & More Beauty" brand, aiming to integrate various lifestyle elements related to alcohol.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
