E-Mart said on Aug. 13 it posted a consolidated operating loss of 43 billion won in the second quarter. Weakness at subsidiaries such as SCK Company pressured profitability. On a standalone basis, it recorded operating profit of 25.6 billion won, showing results from strengthening competitiveness in its core business. Consolidated net sales for the second quarter fell 1.8 percent from a year earlier to 6.915 trillion won, and first-half net sales slipped 1.5 percent to 14.0385 trillion won. First-half operating profit fell 25.2 percent to 135.3 billion won. Consolidated net profit for the first half also showed a loss of 57.4 billion won.

Standalone results showed a clear improvement trend in the core business. Second-quarter gross sales rose 3.5 percent from a year earlier to 4.4428 trillion won, while operating profit climbed 64 percent to 25.6 billion won. First-half gross sales increased 2.7 percent to 9.1581 trillion won, and operating profit rose 15.4 percent to 171.9 billion won. Price, product and space innovation led the improvement. At its flagship "Goraeit Festa" event, sales rose 8.8 percent from a year earlier and customer numbers increased 4.1 percent. It diversified its product portfolio by strengthening its ultra-low-price lineup and expanding its private-label categories.

Results from renewed stores stood out. Average sales at three stores renewed around Starfield Market rose 79.5 percent from a year earlier, and visitor numbers increased 42.4 percent. The share of customers staying for more than 3 hours also rose an average 90.8 percent at renewed stores, demonstrating the effectiveness of its space strategy combining shopping and leisure, the company said.

Traders achieved double-digit growth. Second-quarter gross sales rose 10.3 percent from a year earlier to 992.7 billion won, and operating profit increased 12.7 percent to 34.6 billion won. Sales of its private label "T Standard" grew 24.2 percent from a year earlier, and "T Cafe" sales rose 13.9 percent.

Everyday improved results through integrated procurement synergies. Second-quarter gross sales rose 7.2 percent from a year earlier to 389.1 billion won, and operating profit increased 51.7 percent to 8.1 billion won. First-half operating profit rose 51.5 percent to 16.4 billion won. Subsidiary Josun Hotel & Resort led profitability improvements. On higher occupancy and better average room rates driven by rising tourist numbers, second-quarter net sales rose 0.3 percent from a year earlier to 188.2 billion won, while operating profit increased 41.1 percent to 10.1 billion won. SCK Company recorded second-quarter net sales of 747.3 billion won and an operating loss of 18.4 billion won due to marketing issues. E-Mart24 cut its operating loss to 2.3 billion won on the effects of improving store efficiency.

An E-Mart official said, "In the second half as well, we will continue price, product and space innovation to further strengthen core business competitiveness and market dominance, while actively identifying new business opportunities to further solidify our mid- to long-term growth foundation."