Part 1. Vocabulary
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despite |
/dɪˈspaɪt/ prep. - without taking any notice of or being influenced
by: § Despite repeated assurances that
the product is safe, many people have stopped buying it.
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refute |
/rɪˈfjuːt/ v. - to say or prove that
a person, statement, opinion, etc.
is wrong or false: § People use the fact that there was a cold winter
to refute climate change.
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stake |
/steɪk/ n. - a share or financial involvement in
something such as a business: § He has no financial stake in
the company.
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standpoint |
/ˈstænd.pɔɪnt/ n. - a set
of beliefs and ideas from
which opinions and decisions are formed: § From a fundraising standpoint, he’s been very successful.
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anonymity |
/ˌæn.ɒnˈɪm.ə.ti/ n. - the situation in which
someone's name is not given or known: § Anonymity seems to bring out the worst in
humans.
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Part 2.
Article Reading
Despite repeated denials, investors and
market watchers are weighing the possibility of Mini Stop's headquarters
unloading Mini Stop Korea, given its weak market position and continued profit
decline.
Last week, Mini Stop Korea refuted recent market talks that Mini Stop's
headquarters in Japan was in the process of discussing several but unconfirmed
candidates, with an aim of selling 100 percent of the business: "We've
asked Mini Stop's headquarters for clarification of recent market talks
regarding the possible discontinuation of the Korean business. The headquarters
told us that such talks are groundless."
But Mini Stop Korea's business isn't in good health on multiple fronts. In
terms of the number of stores, nationwide, Mini Stop Korea is the country's
fifth-largest convenient store operator with 2,700 stores. The No. 4 convenient
store operator, Emart24, was operating 5,300 stores as of July of this year. Also,
in terms of numbers, Mini Stop Korea reported 1.79 trillion won in revenue for
the last fiscal year (from March 2020 to February 2021), a decrease of 4.2
percent, year-on-year. It reported an operating loss of 14.3 billion won during
the same period.
"The local convenience store market is fully saturated and given Mini Stop
Korea's weak market position, it is hard for Mini Stop Korea to maintain
sustainability. Obviously, Mini Stop Korea should be able to improve its
profitability. But doing so requires heavy investments," an industry
source said.
Mini Stop's headquarters had attempted to sell off its entire stake in
Mini Stop Korea back in 2018. Lotte Group's SevenEleven and Shinsegae Group's
Emart 24 were tapped as the possible candidates for the acquisition of the
entire stake in Mini Stop Korea. However, the sale process didn't go through,
as the suggested acquisition prices offered by Lotte and Shinsegae were far
below Mini Stop's headquarters' expectations.
But from a market standpoint, investors are saying that the acquisition
of Mini Stop Korea could help a new owner see a chance for increased market
penetration, as the local convenience store market, is seeing signs of
rationalization led by the top two players, CU, and GS25.
"The top players in the sector are pursuing and looking for economies of
scale in product distribution, through third-party or in-house channels. Given
the nature of these interests, it still does make sense for Mini Stop's
headquarters to exit its Korean business," an industry source said on
condition of anonymity (Kim Jae-heun).
https://www.koreatimes.co.kr/www/tech/2021/08/694_314603.html