E-mart posted a consolidated operating profit of 178.3 billion won in the first quarter, its highest first-quarter earnings in 14 years, as warehouse discount chain Traders continued to grow amid a consumer shift toward bulk and value purchases driven by high inflation.
E-mart reported consolidated net sales of 7.12 trillion won and operating profit of 178.3 billion won for the first quarter, the company said in a regulatory filing Tuesday. Operating profit rose 11.9% from a year earlier, marking the highest first-quarter result since 2012.
Standalone results also improved. E-mart's standalone operating profit rose 9.7% year-on-year to 146.3 billion won, the highest level in eight years since 2018.
Traders led the earnings improvement. Its gross sales reached 1.06 trillion won in the first quarter, up 9.7% from a year earlier and a record quarterly high. Operating profit rose 12.4% to 47.8 billion won.
Analysts attribute the performance to continued consumer demand for bulk and value-for-money products amid high inflation. The number of customers visiting Traders rose 3%, while sales of its private brand "T Standard" surged 40%. Sales at "T Cafe," which offers affordable dining menus, also increased 24%.
Industry watchers say some customer demand shifted to E-mart and Traders amid a reshaping of the hypermarket industry following Homplus's corporate rehabilitation. Preference for warehouse discount chains with strong price competitiveness has grown as consumers focus on food and daily necessities, analysts said.
The earnings improvement also reflects Shinsegae Group Chairman Chung Yong-jin's strategy of strengthening core business competitiveness. E-mart has enhanced price competitiveness through integrated purchasing and renovated stores into Starfield Market outlets, extending customer dwell time and reinforcing offline competitiveness. Sales at the Ilsan store, renovated into a Starfield Market, jumped 75.1% year-on-year, while visitor numbers climbed 104.3%. Sales at the Dongtan and Gyeongsan stores rose 12.1% and 18.5%, respectively.
Gmarket, however, remained in the red as it expanded discounts and promotions to attract customers.
