Homeplus, South Korea’s No. 2 discount chain by store locations, will expand overseas sourcing by working together with European suppliers and revolutionizing the operations system, the company CEO said Tuesday.
Homeplus CEO Lim Il-soon speaks at a press conference in Seoul on Tuesday. (Homeplus)
“Retail industry, both domestically and globally, faces unprecedented uncertainties. Our vision, at this critical moment, is to become the most loved and trusted retail company across the country,” said Homeplus CEO Lim Il-soon in a press conference in Seoul. Lim took over the position in October last year.
As part of the company’s plan to provide customers high quality overseas products at low prices, the company said it has been working with the European retail distribution network comprising some 10 retail giants, with combined annual sales valued at about 180 trillion won ($167 billion).
“We began working with those global suppliers and have been sourcing products such as chocolate and pasta to Homeplus stores since last year. Ultimately, we aim to join the network as the first Korean discount chain and bring high quality and unique import goods here,” a Homeplus official told The Korea Herald.
“We even consider bringing global supermarket such as German global discount supermarket chain Lidl’s private brand product to Korea under our name, if that can increase our price competitiveness,” another official said.
Homeplus said it is confident in expanding sourcing based on its experience of working with global suppliers under Tesco, one of the biggest British grocery store chains, which operated the company until 2015 when it sold it to Asian private equity firm MBK Partners.
According to the retailer, it will also unveil new concept stores named “Homeplus Special,” which will provide the convenience of a wholesaler and product variety of a retailer with bulk purchases and reduced operating costs. The first Homeplus Special outlet will open in the first half of this year, although details on the date and location are yet to be confirmed.
“We are going to revolutionize operations system from product planning to cooperation with subcontractors and distribution operation,” said Lim.
The company also plans to open a community market-style convenience store called “Corners,” in an apparent ploy to compete with retail giant Shinsegae’s Emart24. Homeplus’ “Simplus” line, similar to Emart’s brand-less product lineup No Brand, will launch Thursday, the company added.
“We will make Corners become a place that you can find just around the corner, and offer cost-effective products like Simplus,” Lim said, adding that “it is not a copycat strategy to chase after Emart.”
Homeplus also said it will launch a new membership service with strengthened benefits and a 100 percent refund system.
Korea’s second-largest discount chain with 142 outlets across the country, Homeplus recorded turnover of 10.4 trillion won in 2017.
By Kim Da-sol (
ddd@heraldcorp.com)