[
THE INVESTOR] South Korea’s No. 1 discount store chain
E-mart will open its first outlet in Mongolia on July 28, according to local news reports.
The retail chain of Shinsegae Group has been in talks with Altai Holdings, a local trading firm, since 2013 to open the franchise and signed a memorandum of understanding the same year. The process, however, was delayed due to the retailer’s internal issues.
Altai Holdings will be in charge of running the store while E-mart will have a stake of 10 percent and receive royalty in exchange for using the brand name. The retail store will also provide management know-how to the local trading firm to help operate the outlet.
Located in central Ulaanbaatar, the store will be the first grand discount store in the country. Along with the shopping area, the 7,600-square-meter chain will house a car center, kids’ café, hair salon and bank.
E-Mart announced that it has set an overseas revenue target of US$20 million this year, aided by the launch of its outlet in Ulaanbaatar. Last year, the company saw overseas revenue of US$17.2 million.
The new retail store is forecast to make 30 billion won (US$ 26.35 million) revenue, of which 33 percent will come form Korean products.
“We plan to open two or three more stores in Ulaanbataar,” said Lee Gab-su, CEO of E-mart. “I hope the new outlets can help Korean SMEs make inroads into Mongolia in the future.”
By Park Yuna (
yunapark@heraldcorp.com)