Lotte Group Chairman Shin Dong-bin

<이미지를 클릭하시면 크게 보실 수 있습니다>

Lotte Group has appointed the head of Lotte Shopping, who has been leading the overhaul of the group’s e-commerce business, as the new chief that oversees retail operation to better respond to challenges from the surge of e-commerce.

According to industry sources on Tuesday, Lotte Group will authorize Kang Hee-tae, current chief executive of Lotte Shopping, to supervise the entire retail operation ranging from department store, convenience store, super market to home shopping businesses.

The individual heads of Lotte Department Store, Lotte Super, Korea Seven, Lotte Members and LOHB's will be replaced and report to the new chief, sources added.

Since joining Lotte Department Store in 1987, Kang served many roles and proved his expertise in retail. His leadership has brought innovative changes to the operation and organization of Lotte Department Store, and he is now spearheading the Lotte ON Project to integrate all eight online shopping platforms run by its affiliated companies into one online shopping platform.

Kang will continue to direct the group’s digital retail transformation while overseeing the overall operation of the group’s retail business units with enhanced authority over human resources and budget of each unit under his expanded new role.

The decision was mainly made by Lotte Group Chairman Shin Dong-bin who has been spearheading the annual management shake-up since mid-September with emphasis on the group’s digital transformation amid the fast-changing retail business landscape. The sweeping reshuffle of its senior executives – possibly replacing a quarter of 608 on the executive payroll – will be announced Thursday after board meetings.

<이미지를 클릭하시면 크게 보실 수 있습니다>

Hotel and service business also will be led by new chief Lee Bong-chul, current head of finance division at the group’s holding company Lotte Corp. His appointment shows Lotte Group is aiming to speed up the initial public offering of Hotel Lotte, experts say.

The vacancy in the chief executive officer’s position of department store will be filled by Hwang Beom-seok, head of sales division at Lotte Home Shopping. Hwang built his credential by making profits despite under the overall slowdown in the retail business.

Of the six business units under Lotte Shopping, only department store and home shopping channels reported an on-year gain in operating profit in the quarter ended September.

Nam Chang-hee, customer service division head of Lotte Mart, also has been promoted to the CEO of the discount store unit after proving his ability with the marketing strategy for private brand products.

Others promoted to the CEO level include Choi Gyeong-ho of Korea Seven, Hong Seoung-ho of LOHB’s, and Ki Won-gyu of Lotte Cultureworks.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]