The Lotte Department Store Centum City branch in Haeundae is at the center of rumors regarding a potential sale or closure.
As speculation about financial challenges within Lotte Group grows, many believe the company is restructuring underperforming stores to address ongoing issues.
Lotte Shopping has reportedly hired global real estate service company Cushman & Wakefield as an advisor for the Centum City branch.
This move has fueled analysis that the company is accelerating efforts to divest inefficient assets.
Industry insiders suggest closure is more likely than a sale-and-leaseback arrangement, with an estimated sale price of 200-300 billion won.
The branch, ranked near the bottom in sales among Lotte’s 32 nationwide locations, has been under scrutiny for years.
Opened in 2007, it faced significant competition starting in 2009 when the Shinsegae Centum City branch, the “world’s largest department store,” opened nearby.
Lotte has tried revitalizing the Centum City branch through renovations and by introducing new concepts such as shared offices and trendy retailers like Musinsa Standard to attract younger shoppers.
Despite these efforts, no significant changes in sales have occurred, and local government approval for zoning adjustments has stalled, limiting the company’s options.
The situation has been further complicated by broader financial concerns within Lotte Group.
Recent rumors about liquidity issues, including the potential sale of Lotte Rental and problems with Lotte Chemical’s corporate bonds, have sparked speculation about a deeper crisis.
Unverified claims about mass layoffs and financial instability have circulated, although Lotte denies these allegations, asserting that its real estate and deposits total 71.4 trillion won.
A corporate briefing for institutional investors is scheduled for the 26th to address these concerns.
Amid these developments, Lotte employees remain uncertain. While company officials dismiss the rumors, they acknowledge the uncertainty surrounding year-end organizational changes.
