Homeplus Faces 3-Week Rehabilitation Deadline: Product Assortment and Restoring Trust Are Key Variables

Homeplus has initiated efforts toward normalization, backed by a 200 billion won emergency operating fund (DIP) loan.

With its official reopening scheduled for the 13th, the company plans to sequentially restock its shelves by the 12th. However, industry insiders express concerns that if the empty shelves are not filled in time, it will be difficult to bring shoppers back.

◇ Marketing Kicks Off... Critics Point Out 200 Billion Won Has Limits in Normalizing All Stores

According to the industry on the 9th, Homeplus plans to accelerate inventory acquisition alongside the capital injection while simultaneously running marketing events starting from the 13th to normalize store operations and attract customers.

Signs of recovery have been detected, with visitors to the My Homeplus (MHC) membership app increasing to 100,000 recently after dropping following the temporary closure of all stores.

However, the industry's view remains cold.

Critics point out that while 200 billion won can serve as a catalyst for resuming operations, it is far from sufficient to restore nationwide stores to their previous levels.

An official from a major supermarket chain noted, "The minimum inventory required to run just a single store is around 3 billion to 4 billion won. Since a significant number of stores are starting out with missing products, it will not be easy to normalize all branches with just 200 billion won."

◇ "Must Stock Products to Gather Customers"... Supplier Relations and Restoring Trust Are Critical

Ultimately, the primary task is to quickly bring product assortment back to normal levels.

Concerns are rising that if the company fails to secure the products consumers want, the reopening effect will inevitably be halved, even if promotional events are held.

An official from a competitor said, "Existing customers will visit when the doors open and events are held, but if there is nothing to actually buy, they will not return. Creating an initial atmosphere to draw in crowds is more important than anything else."

Behind the sluggish product acquisition lies the supplier relationships, which have not yet fully recovered.

Although situations vary by supplier, negotiations are often prolonged as some demand advance payments instead of traditional credit transactions or impose conditions that drastically shorten payment deadlines.

This is evidence that trust, shattered during the rehabilitation process, has not yet been regained.

Suppliers are raising the issue of unpaid public interest claims and urging countermeasures, leading to predictions that supply chain normalization will be the ultimate test for rehabilitation.


This is also why Homeplus is attempting to match its assortment by prioritizing fresh foods and private label (PB) products.

Fresh foods have a high turnover rate, making them effective for attracting customers and recovering capital quickly.

Previously, Homeplus established a policy to convert into a Trader Joe's-style operation model, shrinking existing multi-story stores into single-story outlets of around 1,000 pyeong and focusing on high-margin categories centered around groceries and daily necessities.

However, some point out that focusing solely on high-turnover products like fresh food and PBs is insufficient to satisfy the diverse demands of customers visiting large supermarkets. Products are not the only issue.

Recently, core tenants have withdrawn or decided to withdraw from some branches, turning the weakening of customer-attracting power into a reality.

Following soft openings, reviews surfaced on social media and online communities stating that some leased stores were empty, making the shopping floors somewhat cluttered.

Within the industry, the prevailing outlook is that it will not be easy for Homeplus to achieve a turnaround in a short period, given the difficult business environment for offline large supermarkets itself.

◇ Must Prove 'Viability' Before Rehabilitation Plan Is Approved

The deadline for the approval of the Homeplus rehabilitation plan is September 4, leaving less than a month to decisively prove viability or proceed with a sale.

An industry insider projected, "It appears that a significant number of departed customers have shifted to online shopping rather than other supermarkets. Even if operations resume, there will not be a major impact on the sales of existing marts."

Citing the case of Timon, which failed to achieve operational normalization even a year after being acquired by Oasis as credit card company participation and seller returns remained delayed, some in the distribution industry analyzed that recovering trust from business partners and consumers could take much longer than legal procedures or fundraising.

Another official stated, "The crisis at Homeplus is not simply a problem limited to Homeplus itself, but a crisis facing the entire large supermarket industry. Discussions on improving relevant regulations must also be accelerated to enhance the competitiveness of offline retail overall."
※ Please note: This article was translated by AI and may contain errors.