Lotte Shopping Surpasses E-Mart as Top Retailer in South Korea

[Editor’s Note] The heated first half of 2026 is coming to a close. The stock market has surged, and the market has celebrated. Yet, success and failure are divided. Behind the smiles of those reaping massive investment profits are those shedding tears over misguided bets. The same goes for listed companies. Stock prices reflect a company's image in the market. Even within the same industry, fortunes fluctuate. Who are the winners and losers? We evaluate the performance of various sectors in the stock market for the first half of the year.

Who is the winner among major retail companies in the first half of the year?

Shinsegae Group and Lotte Group are rivals in South Korea's retail industry, competing fiercely in key sectors such as discount stores and department stores. E-Mart and Lotte Mart dominate the domestic discount market, while Lotte Department Store and Shinsegae Department Store vie for the top two spots in the industry. As the leaders of these two retail giants, Shinsegae Chairman Jung Yong-jin and Lotte Chairman Shin Dong-bin are in a race to determine who will emerge victorious in the first half of this year.

A comparison of the stock prices of E-Mart and Lotte Shopping, both listed on the KOSPI, reveals a dramatic shift over the past year. Until last year, E-Mart led in market capitalization and stock price, but the situation has completely reversed in just one year. Lotte Shopping's stock price has more than doubled, propelling it to the forefront of the retail sector.

Retail Leader Changes in Just One Year

On June 24, the Korea Exchange reported that E-Mart's stock price fell from 83,800 won a year ago (June 23, 2025) to 81,400 won as of June 23, 2026, a decline of 2.86%. In contrast, Lotte Shopping's stock price surged from 74,000 won to 175,000 won during the same period, marking an increase of 136.5%. This shift is also reflected in changes in market capitalization. As of June 23 last year, E-Mart's market capitalization was 2.3125 trillion won, surpassing Lotte Shopping's 2.0933 trillion won.

However, as of June 23, 2026, Lotte Shopping's market capitalization rose to 4.9505 trillion won, while E-Mart's remained at 2.2463 trillion won. Consequently, the gap in market capitalization between the two companies has widened to over 2.7 trillion won, reversing their corporate values that were similar just a year ago.

“The Speed of Performance Recovery Differs”

Analysts attribute the divergent stock price trends to differences in the pace of performance recovery. In the first quarter of this year, E-Mart reported sales of 7.1234 trillion won, a 1.3% decrease compared to the same period last year, while operating profit increased by 11.9% to 178.3 billion won. Conversely, Lotte Shopping's sales rose by 3.6% to 3.5816 trillion won, with operating profit skyrocketing by 70.6% to 252.9 billion won.

Notably, Lotte Shopping's operating profit growth rate was six times that of E-Mart. Strengthening competitiveness in the department store sector, cost efficiency, and expectations for asset value reassessment have been cited as factors driving Lotte Shopping's performance improvement and stock price increase.

Investor Interest Shifts to Lotte Shopping

Investor interest has also shifted toward Lotte Shopping. E-Mart's daily trading volume decreased from 12.4 billion won last year to 11 billion won this year, a drop of 11.7%. In contrast, Lotte Shopping's trading volume surged from 3.6 billion won to 19.3 billion won, an increase of 436.1%.

There are also differences in supply and demand. Last year, foreign investors were net buyers of E-Mart, but this year they have turned to net sellers. While institutional investors shifted from net selling to net buying, this did not lead to a rebound in stock prices.

On the other hand, individual investors have significantly increased their buying of Lotte Shopping. The net buying amount for individuals rose from 1.2 billion won last year to 5.3 billion won this year, more than quadrupling. Expectations for asset value reassessment and shareholder return policies are believed to have stimulated investor sentiment.

E-Mart Has Higher Target Stock Price

However, future stock price forecasts differ. Analysts believe that E-Mart has greater potential for stock price increases. Over the past three months, the average target stock price set by securities firms is 131,200 won for E-Mart and 212,333 won for Lotte Shopping. The potential for stock price increases compared to current prices stands at 61.2% for E-Mart and 21.3% for Lotte Shopping. This is due to E-Mart's stock price having fallen more significantly relative to its target price.

A securities industry official stated, “While Lotte Shopping has seen steady stock price increases due to ongoing performance improvements centered around department stores, E-Mart has faced a downturn in discount store performance and overall business results, compounded by various recent issues, leading to a more significant decline in stock prices. Despite lowering target prices, the actual decline in stock prices has been greater, resulting in an expanded gap.”

He added, “E-Mart's target price may be further adjusted based on future performance trends, while Lotte Shopping is likely to maintain a relatively favorable trend due to ongoing performance improvements in its department store sector.”

* This article has been translated by AI.