SEOUL, Oct. 13 (Korea Bizwire) – Sales of Lotte Mart, the discount store chain of South Korean retail giant Lotte, in China dropped nearly 65 percent in the first eight months of this year in the face of Beijing’s retaliation over Seoul’s installation of a U.S. anti-missile system, data showed Friday.
According to the data provided by Lotte to Rep. Kim Su-min for the ongoing parliamentary audit, its sales came to 410 billion won (US$362 million), down 64.7 percent from 1.16 trillion won tallied for January to August of 2016.
Lotte recently decided to withdraw its discount store business from the Chinese market, after suffering from punitive measures taken by Beijing over the business group’s land-swap deal with the Seoul government to host the Terminal High Altitude Area Defense (THAAD) system.
According to Lotte, 87 out of 99, or 87.9 percent, of Lotte Mart stores in China have suspended operations as of Wednesday.
The retailer said it is expected to log 450 billion won in sales this year, down 1.22 trillion won, or 73.1 percent, on-year under the current conditions. Its operating losses are estimated to reach 250 billion won during the cited period.
Lotte earlier said negotiations are under way with a number of companies who expressed interest in buying its discount store business in China and that it hopes to wrap up the sale by the end of this year.