Standalone operating profit surges 46% in Q3

Price, product and space innovations drive growth

Traders posts record quarterly sales and operating profit

SSG.com, E-mart24 also narrow losses

E-mart, where Shinsegae Group Chairman Chung Yong-jin returned as chief executive for the first time in 13 years, is delivering results through a strategy focused on strengthening its core retail competitiveness. The company's standalone sales surpassed 5 trillion won ($3.72 billion) for the first time in a single quarter, while operating profit jumped sharply. Subsidiaries SSG.com and E-mart24 also improved their profit-and-loss structures, brightening the outlook.

According to E-mart's earnings report released Thursday, standalone total sales for the third quarter came in at a preliminary 5.1 trillion won, up 11.1 percent from a year earlier — the first time quarterly sales have exceeded 5 trillion won. Profitability grew alongside revenue: operating profit surged 46.3 percent year-on-year to 166 billion won, while net profit for the period soared eightfold to 451.5 billion won.

The improvement extended a streak that began in the first quarter. Cumulative standalone operating profit for the first three quarters reached 337.9 billion won, up 28.8 percent from the same period a year ago. On a consolidated basis, third-quarter net sales rose 91.1 billion won year-on-year to 7.49 trillion won, with operating profit of 46.1 billion won maintaining a solid positive trend.

The gains also lifted the operating profit margin. The standalone margin, which had fallen to 0.78 percent in 2024, recovered to 1.67 percent in 2025 and climbed further to a cumulative 2.55 percent through the first three quarters this year — a strong showing given that the discount retail industry has long struggled with margins hovering around 1 percent.

The strong results stem from the price, product and space competitiveness that Chairman Chung has consistently emphasized. E-mart sharpened its price edge through consolidated purchasing and large-scale discount events. Its flagship promotional event, "Goraeit Festa" — a major discount campaign the company pioneered in the industry — saw third-quarter sales and visitor numbers rise 29.2 percent and 14.7 percent, respectively, from a year earlier. Sales of "5K Price," its ultra-low-cost private label brand priced at 5,000 won or less, more than doubled year-on-year.

Space innovation through "Starfield Market," which blends shopping with leisure and cultural experiences, also contributed to earnings. The Gyeongsan store saw sales rise 18.4 percent and visitor numbers climb 8.4 percent after being renovated as a Starfield Market, while the Dongtan store posted gains of 11.4 percent and 7.7 percent, respectively. E-mart positioned itself as a destination store even in the age of online shopping, with third-quarter discount store visitor numbers up 5.3 percent. Traders saw visitor numbers rise 8.0 percent and Everyday 11.5 percent.

Traders and Everyday also contributed to growth. Traders, E-mart's warehouse-style discount chain, posted double-digit gains in both total sales — 1.17 trillion won — and operating profit — 55.2 billion won — in the third quarter, setting all-time quarterly records for both metrics. Its private label T-Standard grew sales 16.6 percent and T-Cafe 15.5 percent. Everyday likewise lifted its competitiveness through large-scale discount events and quick-commerce expansion, with total sales rising 7.7 percent to 399.5 billion won and operating profit up 11.1 percent to 11 billion won. Quick-commerce sales were particularly strong, growing 38.5 percent.

Subsidiaries also held their own. SSG.com narrowed its operating loss by 15.8 billion won year-on-year, aided by operational efficiency improvements. E-mart24, which is shifting toward a profitability-focused business model, cut its deficit by 4.9 billion won. Josun Hotel and Resorts grew operating profit 2.7 percent to 22.6 billion won, driven by higher occupancy from foreign tourists and a rise in average spending per guest.

SCK Company, which operates Starbucks in South Korea, recorded an operating loss of 45.3 billion won, reflecting the fallout from a marketing controversy over its "Tank Day" campaign that led to the suspension of its e-Frequency loyalty program. The company is expected to post a recovery, however, as it has recently focused on rebuilding its brand image.

"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 experience, to solidify our market leadership."

Meanwhile, Chung was formally named E-mart's chief executive in the regular executive reshuffle in October, as he had signaled in June. The move reflects his determination to directly lead E-mart — the group's flagship company — and strengthen accountability in management. Chung is expected to focus on setting the group's future growth strategy while also addressing pressing issues including reinforcing E-mart's leadership, improving the competitiveness of SSG.com ahead of its imminent spin-off, and turning around Starbucks' earnings.

Shinsegae Group Chairman Chung Yong-jin [Provided by Shinsegae Group]
Shinsegae Group Chairman Chung Yong-jin [Provided by Shinsegae Group]

spa@heraldcorp.com