SEOUL, Apr. 4 (Korea Bizwire) — South Korean retail giant Lotte said Wednesday it will unify the management of its scattered fashion businesses under the group’s apparel affiliate to improve its competitiveness in the local market.
Lotte Shopping Co., the operator of the conglomerate’s department store chain, has decided to transfer its global fashion business unit to NCF Co. in June. Lotte purchased local fashion firm NCF for 19 billion won (US$18 million) in 2010.
A company official said the latest decision is part of Lotte’s broader aim to beef up its fashion business.
Industry watchers say NCF will likely launch new brands and carry out mergers and acquisitions of renowned brands, though many expect it will take some time for Lotte to catch up with Handsome Corp., an affiliate of Hyundai Department Store Co., or Shinsegae International Inc., a subsidiary of another retail giant, Shinsegae Inc.
Handsome and Shinsegae International logged sales totals of 1.2 trillion won and 1.1 trillion won in 2017, respectively, while NCF’s revenue stood at some 88.9 billion won.