[Photo by Lee Chung-woo]
South Korea’s Lotte Department Store has put aside pride and recruited experts from rivals as the retail giant struggles both in offline and online sales.
The company on Monday has brought on Cho Hyung-joo from Shinsegae to head its Luxury Brands. Cho previously worked as an Armani buyer at Shinsegae International.
It is also said to be tapping Jin Seung-hyun, who left Lotte Department Store for Samsung C&T Corp., to head of its Luxury D&C unit. Jin recently quit Samsung C&T.
The sweeping overhaul in managerial post at luxury retail business comes after Lotte Department Store last year underperformed its archrivals Shinsegae Department Store and Hyundai Department Store that enjoyed their best-ever performance thanks to the luxury boom from pent-up demand.
Designer brand sales accounted for more than 40 percent of total sales for the first time last year for both Shinsegae Department Store and Hyundai Department Store, whereas designer brand sales accounted for only 18 percent of Lotte Department Store’s total sales.
Lotte Group is traditionally conservative, keeping appointments within. But it no longer can keep to the old ways with its rank in threat.
Lotte chairman Shin Dong-bin conceded to the appointments upon recommendations by Lotte Department Store CEO Jung Joon-ho, who also came from Shinsegae Department Store.
Lotte Department Store also rehired Jang Ho-joo, its former vice president who left the company at the end of 2020, as new Chief Financial Officer (CFO) of the commerce division. Na Young-ho, who was appointed head of Lotte Shopping Co. in April, also worked for Lotte before he joined eBay Korea`s Strategic Planning Division as head.
By Oh Soo-hyun and Susan Lee
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]