South Korean retail giant E-Mart has announced plans to sell about ten unprofitable stores in China.
It is reported that E-Mart plans to relocate its operating strategic center from northern China to the northwestern region. The company will sell its outlets in large cities such as Beijing and Shanghai while opening new stores in medium- and small-sized cities. According to the plan, E-Mart will increase the number of its stores from the current 27 to 45 by 2015. Depending on its new development strategy, E-Mart hopes to improve its retail sales in the Chinese sector and achieve good results.
In addition, the South Korean media reported that E-Mart had talked with a potential buyer of its stores, but the negotiation failed due to price differences. The retailer now holds an open attitude towards selling these stores to multiple buyers. The report also revealed that E-Mart's Chinese business made losses of KRW91 billion, which was about USD83.7 million, in 2010.
E-Mart is the retail brand of South Korea's Shinsegae Group and is one of the largest retailers in South Korea. It entered the Chinese market in 1997 with its first outlet opened in Shanghai.