GS inks deal with Lotte to sell discount stores

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SEOUL, Feb. 9 (Yonhap) -- South Korea's GS Retail Co. signed a deal Tuesday with
Lotte Group, a South Korean conglomerate, to sell its 13 discount stores and
three department stores, GS Retail said.
The retailer said the deal is estimated to fetch up to 1.34 trillion won (US$1.1
billion).
Lotte Group agreed with GS Retail to hire 2,600 employees at the high-end and
discount stores over four years, GS Retail said.
The acquisition will bring the total number of Lotte's discount and department
stores to 84 and 29, respectively.
Lotte Shopping Co., the country's second-largest retailer and a unit of the
group, operates two divisions -- Lotte Mart, the country's third-largest discount
store chain, and Lotte Department Store, the No.1 department store chain.
The biggest discount chain in South Korea is E-Mart, operated by top retailer
Shinsegae Co., followed by Home Plus, operated by Samsung Tesco Co.
Lotte Department Store is followed by Shinsegae Co. and Hyundai Department Store Co.
Lotte Group's acquisition of the GS Retail discount stores and department stores
follows its takeover last month of the Buy the Way convenience store chain from a
U.S. private equity fund for 274 billion won (US$235.4 mln).
ksnam@yna.co.kr
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