Lotte Partners With Japan’s AEON to Build New Shopping Center

The Lotte Group announced that it plans to expand its business activities by creating “suburban malls” by partnering with AEON, the largest wholesale corporation in Japan.

The “suburban malls” will consist of a supermarket, retail stores, and other stores selling various items, allowing customers a one-stop shopping experience.

The AEON group has recently been responsible for over 40 percent of Japan’s shopping malls, and has reported revenues of 1.7 trillion yen (approximately 17.8 trillion won).

A Lotte official said, “AEON is renowned for its successful management of most of its suburban complex shopping centers. Lotte will employ AEON’s corporate know-how and experience, while Lotte will be directly managing the process.”

Currently, Lotte has mentioned Gyeonggi Hwasung City’s DongTan district and seven to eight other areas in the Greater Seoul region as prospective sites for its new shopping center. The final location will be concluded before the end of the year, and after two years of construction, the shopping center will open in 2007.

On a 5,000 pyong plot of land, a high-story department store, a low-story discount store, and a 30-40 meter walkway that connects the two complexes will be constructed. Also, there will be several clothing outlets along the walkway.

About 60 percent of the site will be designated as sales areas while the other 40 percent will have a theater, a game center, a sports center, and other entertainment-related facilities.

Jae-Yun Jung jaeyuna@donga.com