SSG.com to split 'grocery shopping' and 'Shinsegae Mall' back into separate entities

SSG.com, the online retail platform created in 2019 through the merger of E-mart Mall and Shinsegae Mall, is set to revert to its former structure by splitting into two distinct entities after seven years. This strategic move will see the separation of its core grocery shopping operations from its fashion, beauty, and lifestyle businesses.

The decision, approved by the board of directors on March 27, involves an in-kind spin-off. Under this structure, the existing SSG.com will continue as the surviving entity, focusing on online grocery shopping and general e-commerce. A new company, tentatively named Shinsegae Mall Co., will be established to manage the fashion, beauty, and lifestyle segments.

This separation is widely interpreted as a near-final stage in Shinsegae Group's comprehensive plan to disentangle its various affiliate companies. Currently, E-mart holds a 65.1% stake in SSG.com, while Shinsegae holds the remaining 34.9%. The company emphasized that despite the legal division, the two platforms will maintain operational links, ensuring continued integration of products and services for customers.

SSG.com explained that the split is designed to bolster the specialized capabilities of each business unit. By allowing for independent decision-making, the company aims to respond more swiftly and effectively to evolving market demands and consumer trends in their respective sectors.