Shinsegae Group’s e-commerce unit SSG.com is dividing into two companies, splitting fashion, beauty and lifestyle into a separate platform while holding onto its grocery-focused marketplace
The company said Thursday that its board approved spinning off its lifestyle business into a new company, tentatively named Shinsegae Mall, which will operate as a premium e-commerce platform for fashion, beauty and lifestyle goods. The existing entity keeps the SSG.com name as a marketplace built around grocery shopping
SSG.com said it now wants each business to focus on its core strengths through a more specialized structure, instead of operating multiple categories under one integrated platform
“The spinoff will sharpen expertise in each business and let us respond faster to market changes through independent decision-making,” SSG.com said in a statement. “We’ll carry forward customer touchpoints and key business ties postsplit.”
Customers will still browse Shinsegae Mall products through the SSG.com app, while Shinsegae Mall expands its own platform and reach through outside channels
The split reverses course on a decision in 2019 that combined the online operations of E-mart and Shinsegae into a single platform. E-mart currently owns 65 percent of SSG.com and Shinsegae owns the remaining 35 percent. After the split, both will hold identical stakes in SSG.com and Shinsegae Mall
The company plans to hold a special shareholders meeting in late October to approve the plan, with the split set to take effect Dec. 1
minmin@heraldcorp.com
