Harim skips preliminary bid, emerges as preferred bidder for Homeplus Express

Harim Group has jumped into the final bidding for Homeplus Express after skipping the preliminary round and has been named the preferred bidder, industry officials said. The move is widely seen as part of a broader shift in Harim’s distribution strategy.

According to the industry on the 22nd, Homeplus, which is undergoing corporate rehabilitation proceedings, selected NS Home Shopping, an affiliate of Harim Group, as the preferred negotiating partner for the sale of its corporate supermarket (SSM) unit, Homeplus Express.

A preferred bidder is the candidate that offers the most favorable terms in a competitive process and is granted an exclusive period to negotiate. Homeplus has said it aims to move quickly toward a final contract, though due diligence and further reviews remain.

Harim did not submit a letter of intent in last month’s preliminary bidding, appearing to step back. It entered late in the final round, however, after weighing price and business viability and concluding it had a strong chance, the officials said.

If Harim completes the acquisition, it would secure a nationwide network of about 300 stores, potentially strengthening links with its existing food businesses, including meat processing, home meal replacements and fresh foods. NS Home Shopping previously operated an SSM chain, NS Mart, before selling it to E-Mart in 2012; the deal would mark its return to the SSM business after 14 years.

The potential purchase also aligns with Harim Chairman Kim Hong-kuk’s emphasis on “fresh” food. At the NS Food Festa in Iksan, North Jeolla Province, in September last year, Kim said, “For consumers in the Seoul metropolitan area to experience the freshest food, we need logistics centers within the city.”

Of Express’ 293 stores, 223 have quick-commerce capabilities, and 76% of all locations are seen as able to serve as urban logistics hubs, the officials said. Harim could use the network to support its fresh-food supply chain and instant-delivery infrastructure. Some in the market also expect logistics efficiency gains if the stores are linked with Harim Group’s Yangjae urban advanced logistics center being built in Seoul’s Seocho district.

The market has estimated the sale price at around the 200 billion won range. Given Harim Holdings’ operating cash flow of about 1.1411 trillion won last year, the funding burden is expected to be relatively limited, the officials said.

NS Home Shopping has taken a cautious stance, noting talks are still underway. “Our participation is a strategic decision to strengthen competitiveness across online and offline channels,” a company official said. “We also expect to create mutual synergies by offering existing Express tenants new growth opportunities through our online and mobile channels.” The official added, “If the acquisition is completed, we will combine the strengths of both sides to build integrated omnichannel competitiveness.”