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Lotte builds a second mall in Vietnam

Lotte shopping mall Hanoi Vietnam - Retail in Asia

The South Korean conglomerate the Lotte Group has announced a second shopping mall in Hanoi: Ciputra Hanoi Mall.

Mr. Eom Sun Woong, Director of Business Management at Lotte, said that construction is to begin in the second quarter. “We hope to open the shopping mall very soon to meet demand and bring our high-quality services to the people of Hanoi,” he added. The Group has not released any details regarding investment capital.

The mall will span 7.3 ha within the approximately 200,000 sq m complex, together with a department store, a supermarket and a cinema, all to be directly operated by Lotte affiliates.

According to Mr. Woong, in terms of retail, Lotte has been investing and focusing on two department stores: Lotte Department Store Hanoi and Diamond Department Store in Ho Chi Minh City.

Lotte now covers all retail channels: supermarkets, TV sales, online and mobile. It launched an e-commerce site in October 2016 with the goal of staking out a 20 per cent market share in Vietnam’s e-commerce sector.

SEE ALSO: Vietnam’s retail sales leap to US$118 billion

Managed by the Lotte E-commerce Co., the site offers all fast-moving consumer goods (FMCG) from Lotte Mart as well as luxury cosmetics and fashion items from the Lotte Department Store.

Mr. Seo Tae Ho, Director of the Lotte E-commerce Co., said that prices on the site are the same as in Lotte outlets and cheaper than other e-commerce sites. It also launched online shopping apps for iOS and Android, targeting mostly women.

Estimates from The Economist Intelligence Unit show that Vietnam’s retail market has witnessed healthy growth of approximately 10 per cent annually in recent years, with sales growing by about 90 per cent from 2009 to 2015. The market is expected to be the fastest growing in Southeast Asia this year.

Vietnam is emerging as a rising retail market within Asia-Pacific, according to real estate consultants JLL. It has continually been among the world’s Top 30 most attractive emerging retail markets since 2008 in the Global Retail Development Index (GRDI) published annually by AT Kearney from the US.

“The market is becoming more attractive recently on the back of a rise in purchasing power, growth in consumer retail spending, and an expansion in urban population and young demographics,” said Mr. Stephen Wyatt, Country Head of JLL Vietnam.

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