Lotte Mart expands household goods with specialty section
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According to Lotte Mart on Sunday, sales in the Home section at its eastern Busan store increased by 30 percent from late August to October 3rd, 2024, compared to the same period during the previous year. The Home section includes household goods such as kitchenware, repair tools, and cleaning supplies, with sales of everyday goods from its private-label brand surging by a noteworthy 70 percent.
The rise in sales at the Dongbusan store is attributed to the shop-in-shop promoting cost-effective in-house brand household goods, which launched on August 29th. Lotte Mart introduced the shop-in-shop concept for household goods in response to the declining focus on non-food products in major big-box chains, which have been largely centered on food. After testing the concept at the eastern Busan store, Lotte Mart plans to expand it to more locations.
The shop-in-shop offers a lineup where 70 percent of the products are in-house brands. Traditionally, household goods sections prioritized variety, often displaying even low-selling items. But this led to stock accumulation and inefficient use of display space.
In Lotte Mart‘s shop-in-shop, underperforming items, regardless of brand recognition, have been removed, greatly reducing the total product on display while more than doubling the proportion of private label products compared to regular non-food sections. By focusing on high-turnover items, Lotte Mart aims to reduce the burden of inventory management and make it easier for customers to find what they need. it also features lower, fixed-price items in special-price sections.
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