Emart profit jumps as Traders, Starbucks report strong sales

Emart reported a first quarter operating profit of 93.2 billion, with sales rising to 4.2 trillion won. The retailer's focus remains on price competitiveness in its offline outlets.

Customers shop at an Emart outlet in Yeongdeungpo District, western Seoul, during the discount store chain's steep price cut event. [Yonhap]

Emart reported a first quarter operating profit of 93.2 billion ($68.6 million) on Thursday, an on-year increase of 2.3 percent, on increased sales in its discount stores.

Sales in the January–March period jumped 2.3 percent to 4.2 trillion won, the company said in a statement.

Operating profit for the retailer and its subsidiaries in this year’s first quarter jumped 245 percent on year to 47.1 billion won. Sales rose 1 percent to 7.2 trillion won.

Net profit jumped to 29.4 billion won from 2.7 billion won over the same period.

“Increased sales at Emart discount stores and Traders Wholesale Club outlets pushed up the quarterly bottom line. Shareholding gains from affiliates such as Starbucks Korea also helped,” a company spokesperson said over the phone.

Emart holds a 67.5 percent stake in Korean branch of the U.S. coffee chain, and the Government of Singapore Investment Corporation, a Singaporean sovereign wealth fund, owns the remainder.

The company will continue to focus on price competitiveness to attract customers to its offline outlets while beefing up high-end product lineups on its online platforms such as the SSG.com, the statement read.

BY CHOI HAE-JIN, YONHAP [choi.haejin@joongang.co.kr]