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The discount store operator of the Samsung business group, a major player in Korea's retail market, has acquired its rival. Samsung Tesco Homeplus acquired the 35 nationwide discount outlets owned by clothing giant Eland, boosting the number of its stores to more than 100.
The move is sending ripples across a highly-competitive industry that generates more than US$17 billion in annual sales and where foreign players Wal-Mart and Carrefour have packed up and left, unable to beat their Korean rivals in revenue growth.
Now top-ranked retail outlet Emart and Lotte Shopping, which has given up its second-ranked position, are both feeling the heat.
Lotte says it plans to double its number of outlets to 100 over the next two years. But this may be tough as analysts say tightened regulations on the size of new outlets mean the game will no longer be decided by the numbers of nationwide stores.
Arirang News
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