ABC Mart completes Folder acquisition, sets sights on Musinsa rival

ABC Mart, South Korea's largest multi-brand shoe retailer, has completed its acquisition of Folder and is moving to unlock synergies from the deal.

According to industry sources, ABC Mart recently finished transferring Folder's online and offline stores, inventory and staff. ABC Mart Korea, the domestic operator of the chain, signed an acquisition agreement with E-Land World in January and has since cleared the necessary regulatory steps, including approval from the Korea Fair Trade Commission.

Folder is a shoe concept store that E-Land World launched in 2012 and has been generating annual sales of around 100 billion won ($73.1 million). By 2025 sales, it ranked third in the multi-brand shoe retail segment, behind ABC Mart at 660.7 billion won and S-Market at 113.7 billion won.

ABC Mart aims to cement its industry lead through the acquisition. The company surpassed 660 billion won in domestic annual sales last year, its highest since entering the Korean market in 2002. Although it trimmed Folder's store count from 35 to 20 before completing the deal, combined sales this year are expected to exceed 700 billion won.

ABC Mart kept up its growth momentum in the first quarter. According to a disclosure by its Japanese parent company, sales in the Korean market reached 17.9 billion yen ($115 million) from January through March, up 13.1 percent from the same period a year earlier. Operating profit rose 25.9 percent to 769 million yen. Converted at the average won-yen exchange rate for the first quarter — 932.96 won per 100 yen — that translates to roughly 167 billion won in sales.

With the Folder transfer now complete, the full impact of the acquisition is expected to materialize from the third quarter onward. In a June disclosure, ABC Mart's parent said it would combine the know-how and infrastructure of both companies to strengthen partnerships with global brands and expand its business scale over the medium to long term.

Competition with fashion platform Musinsa is also looming. Musinsa launched its first multi-brand shoe store, Musinsa Kicks, in January and has since expanded to locations in Hongdae, Seongsu and Starfield Goyang, with a Jeju store also on the way. The company is targeting more than 10 openings by year-end. Transaction volume at the Hongdae and Seongsu stores has more than doubled since their opening days.

Musinsa Kicks has secured global sportswear brands as partners and stocks limited-edition sneakers and rare models. Its stores are larger than ABC Mart's and organized by category — running, outdoor and others — setting it apart from the competition. The company also plans to open combined stores that integrate Musinsa Kicks with other platforms such as Musinsa Beauty.

"ABC Mart is solidifying its top position through the Folder acquisition, but Musinsa is closing in fast," an industry official said. "Musinsa is rapidly expanding into major commercial districts, drawing on a base of young consumers and foreign customers."