Local player Lotte Shopping has acquired the GS Mart hypermarkets and GS Square department store operations from GS Retail in South Korea.

The deal, valued at about £700m, includes three department stores and 14 hypermarkets and will help Lotte Shopping close the gap on market leaders Shinsegae, which runs the E-mart chain, and Tesco’s Homeplus in the hypermarket sector.

The acquisition follows Lotte’s purchase last month of the Buy The Way convenience store chain.