E-mart Q1 profit triples thanks to reform drive led by Chung Yong-jin

E-mart CI

South Korean retail giant E-mart posted a major turnaround in its first-quarter 2025 earnings, achieving its highest quarterly profit in eight years by improving core business profitability despite stagnant revenue growth.

The company’s consolidated operating profit surged 238.2 percent year-over-year to 159.3 billion won ($112.1 million), while net revenue inched up just 0.2 percent to 7.22 trillion won. This is the company’s largest first-quarter operating profit since 2017.

The improved performance is seen as the result of aggressive reforms led by Chung Yong-jin,who took the helm at Shinsegae Group in March 2024. Chung has emphasized building an unassailable lead in core sectors such as E-mart and Starbucks, while also pushing rapid restructuring in weaker businesses such as e-commerce and construction.

Standalone revenue for E-mart totaled 4.63 trillion won with operating profit at 133.3 billion won, up 10.1 percent and 43.1 percent respectively. The retailer’s commitment to offering essential goods at the lowest prices helped draw more in-store customers, while losses were trimmed in affiliates such as Shinsegae E&C and E-mart24.

Flagship initiatives such as the low-price “Great Festa” campaign and streamlined shopping routes at Starfield Market locations contributed to double-digit sales growth. Warehouse chain Traders also benefited from consumers seeking better value amid inflation, with the newly opened Magok branch recording the highest sales among its 23 locations by the end of March 2025.

By division, discount stores generated 27.1 billion won in operating profit, up 53.7 percent, while Traders posted a 36.9 percent rise with 11.4 billion won. However, specialized stores saw a 4 billion won decline in sales.

Major affiliates also performed well. Starbucks Korea, which is run by SCK Company, saw its sales rise 3.7 percent to 761.9 billion won, with operating profit up 7.3 percent to 35.1 billion won. Shinsegae Property posted a near tripling of profit and E-mart24 reduced its losses by more than 20 percent. Shinsegae E&C, which was delisted in 2024, narrowed its deficit by 13.7 billion won.

However, the e-commerce segment continued to struggle. SSG.com posted a 56.6 billion won drop in revenue and a 4.2 billion won increase in operating loss. Gmarket also reported a 21.4 percent fall in sales and a 42.4 percent deeper operating loss.

An E-mart official said the company is “starting to see tangible results from ongoing innovation efforts that have focused on strengthening core business competitiveness,” and plans to continue pursuing growth via price, product, and space innovation.