(LEAD) Shinsegae net profit edges down in 2009

(ATTN: RECASTS lead, 4th para; ADDS more details from para 4)
SEOUL, Feb. 1 (Yonhap) -- Shinsegae Co., the operator of South Korea's largest
retailer, said Monday that its earnings fell 1 percent last year due to weak
domestic demand and increased spending.

Net profit reached 568 billion won (US$485 million) last year, compared with a
profit of 573 billion won a year earlier, the company said in a regulatory
filing.
Sales increased 12.5 percent to 10 trillion won, and operating income gained 9.4
percent to 919 billion won, it said.
The company said it is targeting sales of 10.8 trillion won this year, up 8.2
percent from last year, and an operating income of 1.01 trillion won, a rise of
9.9 percent.
Shares of Shinsegae closed down 0.38 percent to 523,000 won on the Seoul bourse.
The retailer will invest about 800 billion won to expand its department and
discount stores and to enhance its competitiveness in the Chinese discount store
market.
Shinsegae plans to increase the number of its discount stores by six or seven to
about 30 in China this year.
It will also hire a total of 5,000 new employees this year through the investment.
Shinsegae regained the top spot in the domestic retail market from its rival
Lotte Shopping Co. in terms of gross sales for 2009. The company recorded 12.73
trillion won in gross sales last year, compared with 12.16 trillion won the
previous year.
Gross sales include the total invoice value of sales, before deducting customers'
discounts, returns, or allowances. The figure is an important indicator for
retailers because it measures the amount of products that a company sells
relative to its rivals.
ksnam@yna.co.kr
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