E-mart posts record quarterly sales above W5tr on 'Gorae-it' festival, Traders surge

E-mart said Wednesday its standalone operating profit rose 46.3 percent on-year to 166 billion won ($124 million) in the third quarter.

Standalone total sales for the same period climbed 11.1 percent to 5.1 trillion won, marking the first time the retailer has surpassed 5 trillion won in quarterly sales. Cumulative standalone operating profit for the first three quarters reached 337.9 billion won, up 28.8 percent from a year earlier.

On a consolidated basis, third-quarter net sales came to 7.49 trillion won, up 91.1 billion won from a year ago, while consolidated operating profit stood at 46.1 billion won.

E-mart said innovations in pricing, products and store formats drove higher foot traffic. On the pricing front, the company expanded its price investment through consolidated purchasing and large-scale discount events.

Sales and visitor numbers at events including the "Gorae-it Festa" promotion rose 29.2 percent and 14.7 percent, respectively, compared with the same period last year. On the product side, E-mart broadened its ultra-low-price lineup and diversified its private-brand offerings. Sales of "5K Price," its ultra-low-price private brand, more than doubled on-year.

Store renovations also contributed to growth. The Gyeongsan branch, converted to the Starfield Market format, saw sales rise 18.4 percent and foot traffic increase 8.4 percent after its relaunch. The Dongtan branch posted sales growth of 11.4 percent and a 7.7 percent increase in visitors.

Traders, E-mart's warehouse-style retail chain, hit all-time quarterly highs for both total sales and operating profit in the third quarter. Total sales surged 16.6 percent to 1.17 trillion won, while operating profit rose 40.5 percent to 55.2 billion won. Sales of the private brand "T Standard" grew 16.6 percent, and "T Cafe" sales rose 15.5 percent.

Everyday, E-mart's convenience store chain, posted third-quarter total sales of 399.5 billion won, up 7.7 percent, and operating profit of 11 billion won, up 11.1 percent. Large-scale discount events using consolidated purchasing and an expansion of quick-commerce services drove the gains. Quick-commerce sales grew 38.5 percent.

Foot traffic also rose across the group's core retail formats. Third-quarter visitor numbers increased 5.3 percent at E-mart discount stores, 8.0 percent at Traders and 11.5 percent at Everyday, all compared with a year earlier.

Online and offline affiliates likewise improved their earnings. SSG.com narrowed its losses by 15.8 billion won compared with the same period last year. E-mart24 cut its operating loss to 2.9 billion won, a reduction of 4.9 billion won.

Josun Hotel and Resort reported a 2.7 percent increase in operating profit to 22.6 billion won, driven by higher occupancy rates and spending per guest as the number of foreign visitors to Korea rose.

SCK Company, by contrast, posted an operating loss of 45.3 billion won, hurt in part by the discontinuation of its e-Frequency loyalty program. The company said it is on a gradual recovery path through brand image restoration efforts and improvements to product competitiveness.

"The core retail competitiveness we have steadily built has expanded our customer base, driving both top-line growth and improved profitability at the same time," an E-mart official said. "We will continue to pursue retail innovation while expanding the benefits customers can feel directly."