Lotte Shopping Co., South Korea’s No. 1 retailer, is expected to fare better next year on improved sales in electronic goods following its acquisition of a local appliance retailer, analysts said Friday.

The retail giant’s sales for 2013 are forecast to reach 30 trillion won ($27.4 billion), up 23 percent from this year’s estimate, according to a report released by Korea Investment & Securities Co.

“Following the retailer’s acquisition of Hi-mart Co., Lotte Shopping can seek synergy among its diverse retail channels to beef up sales of electronic appliances next year,” said Yeo Yeong-sang, an analyst from Korea Investment & Securities.

Samsung Securities analyst Nam Ok-jin echoed the view, predicting Lotte Shopping’s sales and operating profit will next year increase 21.2 percent and 26.2 percent, respectively, due to the successful acquisition.

In July, Lotte Shopping, the flagship affiliate of retail-oriented conglomerate Lotte Group, reached a deal to purchase a 65.25 percent stake in electronics appliance retailer Hi-mart for 1.24 trillion won.

Hi-mart ranks No. 1 in terms of home appliance and information technology product sales, outperforming similar retail operations run by Samsung Electronics Co. and LG Electronics Inc., market watchers said.

Meanwhile, Lotte Shopping’s net income reached 285 billion won in the third quarter, down 19.5 percent from a year earlier, the company said in a regulatory filing on Thursday.

“The decline was attributable to the country’s stagnant consumer sentiment amid the prolonged economic slowdown around the globe, which weighed down on the company’s sales,” an official from the retailer said. (Yonhap News)