Homeplus Co. said on the 23rd that on the 22nd it signed a definitive agreement with NS Home Shopping for the transfer of the operating rights of the supermarket institutional sector, Homeplus Express (hereafter Express). Management of Homeplus Express will be handled by the new subsidiary launched by NS Home Shopping, "Homeplus Express Co., Ltd."
Before signing the definitive agreement, NS Home Shopping conducted on-site inspections of all stores and provided payment guarantees to suppliers, among other preparations to normalize operations.
NS Home Shopping plans to leverage its product operations capabilities, digital commerce experience, and partner network to boost Express's competitiveness. By combining its know-how in operating TV home shopping and mobile and online channels, it aims to enhance product competitiveness and operational efficiency, and to provide a differentiated customer experience through online-offline integration.
It is also moving to strengthen competitiveness in online business. By combining a proximity-based local distribution network with digital commerce, it plans to expand online-offline synergy and broaden customer touchpoints. The goal is to grow into a lifestyle-embedded platform where customers can purchase desired products faster and more conveniently.
Chief Executive Cho Hang-mok of NS Home Shopping said, "We are at a new starting point to establish a stable operating foundation for Homeplus Co. Express and to restore customer trust," adding, "We will focus on stabilizing product supply and restoring store competitiveness to build the neighborhood's go-to supermarket that customers want to visit again."
Express has shown a rapid recovery as product supply normalized based on NS Shopping's payment guarantee starting early this month. According to Homeplus Co., Express sales recovered to about 50% of pre-rehabilitation levels in roughly two weeks after product supply resumed.
Homeplus Co. plans to use the Express sale as a catalyst to accelerate normalization of the remaining business units. The company is currently making an all-out effort to secure an emergency operating fund debtor-in-possession (DIP) loan of 200 billion won needed for structural innovation and operational normalization.
A Homeplus Co. official said, "The Express normalization case shows that the remaining business institutional sector can also quickly recover customer traffic and sales if a 200 billion won DIP loan is executed and only product supply is normalized," adding, "If we secure operating funds through the DIP loan, we can complete the ongoing structural innovation, build a stable operating foundation, and achieve normalization in a short period of time."