Oasis Market's Q2 operating profit nearly doubles on cost discipline

Oasis Market significantly improved its second-quarter profitability by upgrading its product portfolio and strengthening cost competitiveness, even amid high inflation and a slowing economy.

The online grocery platform said Thursday its second-quarter operating profit rose 95.5 percent year on year to 6.95 billion won ($4.91 million), with an operating profit margin of 5 percent. Revenue for the same period fell 7.9 percent to 137.06 billion won.

Cumulative first-half operating profit climbed 55.3 percent from a year earlier to 15.21 billion won, with an operating profit margin of 5.5 percent, reflecting steady earnings capacity.

The company said its strategy of stepping back from aggressive marketing-driven sales competition in favor of building internal strength had paid off.

Oasis Market expanded its private-label offerings and competitive product lines while directly sourcing high-quality products, cutting its cost-of-sales ratio by 3.50 percentage points from the year-earlier level of 70.54 percent.

Inventory management automation and route optimization through its in-house logistics solution, Oasis Route, helped reduce variable costs. Selling, general and administrative expenses also fell 5.1 percent year on year, maximizing operational efficiency.

Buoyed by the improved profitability, Oasis Market has been enhancing customer benefits. A flagship initiative is its "Club Oasis" membership service, launched in late June, which offers top-tier reward points at an effective subscription fee of zero won.

The company is also accelerating the digital transformation of its physical stores to generate synergies between its online and offline channels. It is rolling out AI-powered unmanned checkout terminals called "Route" across all stores in stages. At the seven locations where the system is already in place, the company said it has seen measurable results — shorter customer wait times, improved store operational efficiency and reduced fixed-cost burdens.

"The second quarter was a period in which we focused on strengthening our fundamentals through sound management rather than chasing top-line growth," a company official said. "Going forward, we will further solidify our profitability through retail-tech innovation, including our unrivaled logistics automation solutions and the expansion of AI-powered unmanned stores."