Lotte Mart wants to cooperate with Co.opMart chain

South Korea’s leading department store operator Lotte Mart with 183 stores worldwide has shown interest in cooperating with Saigon Co.op, the operator of Vietnam’s leading retail store chain Co.opMart, to tap the local market.

Byung-Yong Noh, CEO and president of Lotte Mart Co Ltd, talked about the company’s plan at a press briefing held in HCM City on Wednesday to announce the opening on Thursday of its second store in HCM City, Lotte Mart Phu Tho, at the EverRich apartment buildings in District 11.

“After some 18 months of operating the first store in HCM City, we have learned about what Vietnamese customers need,” he said, “We know the CoopMart store chain is a favourite shopping destination for Vietnamese consumers.”

That is the reason why the Korean investor wants to cooperate with Saigon Co.op to share experience in doing business.

To do good business at a department store or a supermarket, the operator of the store needs to combine many things including buying goods, logistics, displays, and services, he said. “That is why we want to cooperate with Saigon Co.op.”

He wants to share experience in supermarket management which his company has gained over the past 30 years.

He said his company would work with Saigon Co.op soon to propose the cooperation. Lotte Mart is expected to expand its retail centres in Vietnam to up to 30 by 2018.

Meanwhile, Saigon Co.op has 45 Co.opMart supermarkets and plans the number to at least 100 by 2015.

Lotte Vietnam Shopping Co, a unit of Lotte Mart, on Thursday opens its second shopping centre in the city at the corner of Ba Thang Hai and Le Dai Hanh streets in District 11. Its first store is located in Saigon South new urban area in District 7.

The company’s new store is situated on the first five floors of The EverRich apartment buildings with 12,000 square meters. The company has bought the commercial area of the EverRich from Phat Dat Property Development Joint Stock Co., the owner of the buildings.

The Lotte Shopping centre is a $100 million venture between Lotte Shopping and Vietnam’s Minh Van Company. The Lotte Mart Phu Tho includes a supermarket on the second and third floors, which stocks 50,000 essential commodities, more than 90 percent of them supplied by domestic producers.

There will be a play area for children, and shops for toys and study requisites on the fourth floor. The fifth floor will be home to restaurants, recreation, beauty, dental care and other services outlets, according to the company.

“This is the second achievement by Lotte Mart Group since we came to Vietnam in 2007,” Hong Lyong Kyu, general director of the company.

The Lotte Mart in Phu My Hung costs $75 million and covers 33,400 square meters in Saigon South area. The three-floor venue includes a 15,800-square-metre supermarket, and other amenities such as a cinema theater, a bookstore, a home appliance centre, and restaurants.

Lotte plans to pour some $5 billion into 30 department stores in HCM City, Hanoi, Da Nang, Can Tho and Hai Phong.

Tags: Co.opMart, Lotte Mart, Vietnam retail market