Harim Group Becomes Third Largest SSM Operator with Homeplus Express Acquisition

Harim Group's subsidiary, NS Shopping, has acquired Homeplus Express, the supermarket division of Homeplus, raising expectations for business synergy. The acquisition is expected to accelerate vertical integration in food production, logistics, and distribution based on Homeplus Express's nationwide store network.

According to the retail industry on May 10, Harim Group is re-entering the domestic offline retail market in the form of a corporate supermarket (SSM) through NS Shopping's acquisition of Homeplus Express. This marks the group's return to the sector after selling NS Mart to E-Mart in 2012, a span of 14 years.

On May 7, Homeplus, which is undergoing corporate rehabilitation, and NS Shopping signed a contract for the transfer of the Express business rights. The sale price is reported to be 120.6 billion won, falling short of the initially speculated 300 billion won. However, NS Shopping has agreed to settle some of Homeplus Express's debts, which is expected to increase the actual financial burden, although the specific amount has not been disclosed.

With this acquisition, Harim Group has quickly ascended to become the third-largest player in the SSM sector. As of the end of last year, Homeplus Express operated 295 stores, ranking behind GS The Fresh (585 stores) and Lotte Super (338 stores). Notably, 90% of its stores are located in the metropolitan area and major cities, which is considered a significant advantage.

Industry experts view Harim Group's acquisition of Homeplus Express as a strategic move aimed at leveraging synergies with its food business. Homeplus Express caters to the shopping needs of single-person households and homemakers, providing a platform for Harim Group to sell its meat products, home meal replacements (HMR), and processed foods directly. Additionally, establishing a structure that integrates production, distribution, and sales could help secure stable sales channels for its food business.

There is also speculation about utilizing Homeplus Express stores as urban delivery hubs, potentially entering the quick commerce market. Furthermore, if linked with the Yangjae urban logistics center, which Harim Group aims to complete by 2029, it could create a delivery system that combines a large logistics hub with urban store networks.

NS Shopping believes that combining its existing home shopping and online channels with Homeplus Express's offline store network will broaden opportunities for partner companies. By leveraging its 25 years of experience in handling agricultural products and food, NS Shopping can provide small food partners with opportunities to enter offline stores, while Homeplus Express partners can expand their sales channels through online and mobile platforms.

However, challenges remain. Competition among SSMs, e-commerce, and convenience stores is intensifying, leading to a shrinking market for SSMs. The speed at which Harim Group can restructure the Homeplus Express store network into a retail hub will be a critical factor in its success.

An NS Shopping official stated regarding the acquisition of Homeplus Express, "This will be an important turning point for strengthening our competitiveness across online and offline channels based on our expertise in food and distribution. We will carefully review all matters to ensure that the remaining procedures proceed smoothly."

Meanwhile, following the sale of Homeplus Express, Homeplus has begun restructuring its remaining business segments, including hypermarkets, online operations, and headquarters. From May 10 to July 3, it plans to temporarily suspend operations at 37 of its 104 hypermarket locations, focusing on the remaining 67 stores that contribute more significantly to the business.