Large-scale changes are reportedly coming for Lotte Group’s retail business, which has been hard hit by the pandemic and slow to shift online amid rising demand for e-commerce services, The Korea Times reports.

Industry insiders say Lotte Shopping will centralise all of its online business employees under its e-commerce platform Lotte ON, including those in charge of e-commerce for its department stores. The company has denied this, however.

Lotte is under increasing pressure as rival retailer Shinsegae gains ground, especially in online sales. This year has seen Shinsegae ink a partnership with top tech firm Naver and acquire eBay Korea, the country’s third largest e-commerce company. According to the Times, Lotte ON’s e-commerce market share is 10 percent lower than the average of leaders Coupang, Naver and Shinsegae.

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