An unsettled mood is deepening across Homeplus Co. stores undergoing court receivership. Although the rehabilitation deadline has been extended, inventory clearance is in full swing at locations set to close within the year, and even stores without closure plans are seeing fewer customers as delivery disruptions from a cash crunch recur.
On the afternoon of the 30th, Homeplus Co.'s Jamsil store in Songpa-gu, Seoul, appeared to have shelves fully stocked, but most were filled with its private label (PB) "Simplus" products. From foods such as milk, juice, and meal kits to processed items like olive oil, canned goods, and snacks, as well as household goods including toilet paper and cookware, PB products had a high share.
The liquor section had far fewer items overall. On the beer shelves, only some Cas from Oriental Brewery remained, while most other brands and imported beers had disappeared. In the spaces where soju and traditional liquor had been, only limited quantities of makgeolli were displayed, and the wine shelves also had fewer varieties, leaving the area generally sparse.
Displays marked with "buy one, get one (1+1)" or "50% off" signs also stood out. Employees were seen all over, pushing carts to check product inventory and constantly straightening displays to keep empty spots from showing. At tenant shops and checkout counters, only employees were moving about, with hardly any customers in sight.
Homeplus Co.'s store rationalization stance has recently spread to key commercial districts in Seoul and the greater metropolitan area. Homeplus has continued closing stores amid court rehabilitation. It shut five locations in December last year—Woncheon, Gayang, Jangnim, Ulsan Buk-gu, and Ilsan—and five more in January this year—Gyesan, Ansan Gojan, and Siheung among them.
The Jamsil store was slated for closure at the end of January. While the exact timing has not been set, there is talk it could close around the second half. Analysts say intensified competition after nearby Lotte Mart World Tower and Zettaflex Jamsil opened hurt performance.
A similar mood is sensed even at stores without announced closures. As product supply falters due to a cash shortage, customer traffic falls and tenant sales decline, creating a vicious cycle. At some stores, spaces left by tenants that could not hold on are being filled with temporary discount events.
At Homeplus Co.'s Yeongdeungpo store recently, a space vacated by the Japanese home furnishings brand Nitori has been taken over by a sale of imported shoes and apparel. With boxes of goods stacked and a banner reading "up to 90% off" hung up, the atmosphere feels rushed to plug empty space temporarily.
Online, reactions are mounting that stores without announced closures may be entering a winding-down phase. Among internet users, posts expressing concern about store conditions said, "Sold-out items have increased noticeably," "Even if closure isn't imminent, there's so little stock that I end up not going," and "Some liquor sections have no shelves at all."
Homeplus Co., which entered court rehabilitation in March last year, submitted a rehabilitation plan to the court that includes restructuring up to 41 underperforming stores over the next six years. Of these, 19 locations are set to end operations within this year, and some core stores are to be sold. The number of Homeplus stores fell from 126 at the end of 2024 to 107 now.
A key pillar of the rehabilitation plan, the fate of the sale of the supermarket chain (SSM) Homeplus Express, reaches a turning point on the 31st. Samil PwC, the sale manager, will accept letters of intent (LOIs) until 3 p.m. that day.