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[Alpha Biz=(Chicago) Reporter Paul Lee] E-Mart posted its first annual deficit since its establishment. E-Mart announced on the 14th that it recorded a consolidated operating loss of 46.9 billion won last year.
Sales rose 0.5 percent year-on-year to 29.472 trillion won during the same period. The net loss for the current term is 187.5 billion won.
It is the first time that E-Mart has recorded an annual operating loss since Shinsegae Group split its personnel in 2011 and established a corporation.
The issue of unsold units of its subsidiary Shinsegae Engineering & Construction has been hampered. Shinsegae Engineering & Construction posted an operating loss of 187.8 billion won last year, up 175.7 billion won from a year earlier. This is due to rising construction costs, sluggish sales due to the sluggish real estate market, and pre-reflection of future losses.
Offline distribution, which is the main business, also performed poorly. E-Mart recorded sales of 16.55 trillion won and operating profit of 188 billion won last year. The figure is down 2.1 percent and 27.4 percent, respectively, from a year earlier.
The sluggishness of its online affiliate, SSG.com (SSG.com) remained. SSG.com reduced its deficit to 103 billion won last year compared to the previous year, but its sales fell 3.8% year-on-year to 1.6784 trillion won.
However, Gmarket posted positive results as its quarterly operating profit turned to surplus. Gmarket's sales fell 9.2% on-year to 1.1967 trillion won last year, but its operating loss was 32.1 billion won, more than halving its deficit.
SCK Company (Starbucks Korea) posted sales of 2.9295 trillion won and operating profit of 139.8 billion won last year, up 12.9% and 14.2%, respectively. Chosun Hotel & Resort posted sales of 556.2 billion won and operating profit of 40.3 billion won, up 15.9% and 81.5%, respectively.
This year, E-Mart plans to restore its offline competitiveness in earnest.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
