Homeplus "Mobile Sales Up About 45%... Rapid Growth in Delivery Within 1 Hour"

A model is showcasing the 'Homeplus Express Online' service at Homeplus Express Namseong branch in Dongjak-gu, Seoul on the 21st. Homeplus announced that mobile sales increased by 30% compared to the same period last year from the 12th to the 18th due to the resurgence of COVID-19. They also explained that the one-hour immediate delivery service of Homeplus Express, launched in February, has grown more than three times compared to its initial launch (Photo by Homeplus).

[Asia Economy Reporter Yuri Kim] Homeplus announced on the 21st that mobile sales have significantly increased recently as the COVID-19 resurgence intensifies.

According to Homeplus, on the first day of the announcement of Level 4 social distancing in the Seoul metropolitan area on the 9th, mobile sales surged by about 45% compared to the period from the 5th to the 8th. Mobile sales from the 12th to the 18th, when Level 4 social distancing was applied in the metropolitan area, grew by 30% compared to the same period last year.

Homeplus Express's one-hour immediate delivery service sales also grew more than threefold compared to its initial launch. Sales from the 12th to the 18th increased by 20% compared to the previous week. Homeplus analyzed that customers are switching to mobile shopping more quickly due to this resurgence.

Homeplus is an offline retail company operating 138 large supermarkets and 334 corporate supermarkets nationwide. To adapt to changing retail trends, it announced in July 2019 its ambition to become an 'All-Line' retail company encompassing both offline and online channels.

Homeplus stated that the proportion of mobile business sales compared to total company sales from January to June has steadily grown, recording 10% in 2019, 14% in 2020, and 16% in 2021. From the 5th to the 11th, ahead of the escalation to Level 4 social distancing in the metropolitan area, the share of mobile business sales reached about 20%, indicating that the mobile business is becoming more active amid the crisis.

During the period from the 5th to the 11th, fresh food accounted for an average of about 40% of Homeplus mobile orders. Additionally, the best-selling products during this period were rice, pork belly, fresh chicken, seafood, and seasonal fruits. Masks sold three times more than the same period last year, and sales of hand sanitizers and hand wash increased by more than 30%.

Homeplus attributes the strength of its mobile business in the fresh food sector to the expertise of its 'Pickers.' Pickers are housewife employees responsible for picking online orders at Homeplus, possessing veteran-level shopping experience. Homeplus has expanded its pickers from about 1,400 across 107 stores in 2019 to about 1,900 across 123 stores currently.

The delivery fleet has also increased from about 1,000 to 1,400 vehicles. Homeplus mobile delivery vehicles are cold chain vehicles equipped with three compartments: ambient, refrigerated, and frozen.

Since 2018, Homeplus has been the first in Korea to introduce the 'Fresh A/S System,' which is also well-received among mobile customers. This system allows customers to exchange or refund up to 100,000 KRW per instance, up to 10 times a month, if they are dissatisfied with any aspect of the quality of fresh products, such as taste, color, sweetness, or texture. Since the system's implementation, Homeplus's average monthly return rate has consistently remained below 0.01%. Homeplus stated, "Not only are fresh foods carefully selected by our pickers delivered, but the sourcing process also provides an opportunity for buyers to verify quality once more, which acts as a positive function that overall raises the standard of fresh foods."

Homeplus plans to increase the number of pickers to 4,000 and delivery vehicles to 3,200 within three years.

Sales of the one-hour immediate delivery service, first introduced in the supermarket industry by Homeplus Express, have also more than tripled compared to the initial launch, setting a goal to expand its market share in the 'quick commerce' sector. The 'Fresh & Ready Meal Specialty Stores,' launched to meet customer demand for more frequent purchases of fresh foods and ready meals at supermarkets, are considered a strength. Homeplus Express currently operates 126 stores remodeled as 'Fresh & Ready Meal Specialty Stores.' They have reduced the number of non-food items and increased the food assortment to about 90% of that of large supermarkets. Homeplus Express plans to sequentially increase the number of 'Fresh & Ready Meal Specialty Stores' to 159 within this year.

This content was produced with the assistance of AI translation services.