SSG.com to Spin Off Lifestyle Business Division

SSG.com, the e-commerce arm of South Korea's Shinsegae Group, is set to spin off its lifestyle business division. This strategic decision marks a departure from its previous platform integration strategy, aiming instead to foster independent decision-making and management structures to navigate evolving market dynamics more effectively.

The company's board approved the spin-off on August 27. Following approval at an extraordinary shareholders' meeting in late October, the separation is expected to be finalized by December 1. This move will see SSG.com, established as an integrated entity seven years ago, divided once again.

The surviving entity will retain the SSG.com name and concentrate on its core grocery (online grocery shopping) business. A new entity, tentatively named Shinsegae Mall, will be established to focus on premium e-commerce in fashion, beauty, and lifestyle categories. Shinsegae Group affiliates E-Mart and Shinsegae will hold stakes of 65.1% and 34.9% respectively in the new structure, with existing shareholders receiving shares in both entities proportionally.

Despite the corporate split, SSG.com assures customers that business integration will continue for their convenience. The Shinsegae Mall platform will remain accessible within the existing SSG.com app, allowing seamless purchasing of lifestyle products. Shinsegae Mall will also focus on strengthening its own platform while expanding customer touchpoints through various channels, including SSG.com.

"Through this spin-off, we expect to enhance the specialization of each business and respond more swiftly to market changes based on an independent decision-making system," stated an SSG.com representative. "Even after the separation, we will continue to strengthen our competitiveness by maintaining strong business ties and customer connections."