The first Lotte Mart store in Mongolia is expected to be opened in Ulaanbaatar next year. Lotte has set up a joint venture with Nomin Holdings, which will sell Lotte’s private label products for the next 10 years. The two companies are initially targeting sales of US$3m a year.

Since last year, Lotte has been selling its private label food products, Only Price, Yorihada and Choice L at four stores, including a state-run department store and two supermarkets owned by Nomin in Ulaanbaatar. The retailer launched its Lotteria fast-food chain in Ulaanbaatar last month, and plans to open ten outlets in the next four years. Stores will operated by Eugenetek Mongolia, who has signed on as a master franchisor.

With Lotte on the verge of exiting China entirely, it is consolidating its operations at home and turning to Vietnam and Mongolia overseas. Fierce South Korean rival, Shinsegae, entered Mongolia in 2016 with Emart via a franchise agreement with Sky Trading, a local distribution unit of Altai Group. With Lotte also planning to enter the market, Mongolian shoppers will have a greater choice of Korean products in addition to Emart.