"Turning 80% of Stores into Logistics Hubs" … Homeplus, Unique Expertise in 'Mart Direct Delivery'

Fresh Food Quality Innovation Effective... Double-Digit Growth in Online Sales
Positive Response to Pilot 'SevenOrder'... Expanding to 22 Stores Nationwide by Year-End

As competition among retailers to dominate the e-commerce market intensifies, Homeplus is growing by recording double-digit growth in online sales, leveraging its 'Mart Direct Delivery' service.

On the 2nd, Homeplus announced plans to expand its online delivery volume from about 100,000 orders per day to over 130,000 by 2025. To achieve this, the number of online-only pickers will increase from the current 1,980 to 4,870, and delivery vehicles will grow from 1,500 to 3,830, approximately 2.5 times each, enabling same-day delivery that is fastest and freshest from the closest location to customers nationwide.

Homeplus, which first introduced Mart Direct Delivery and 'Same-Day Delivery' in the industry in 2002, has continuously expanded its store-based logistics hubs. Homeplus's online sales, which were around 500 billion KRW in 2017, have grown at an average annual rate of 20% over the past five years, and sales from January to October this year also increased by 13% compared to the same period last year. It is expected to surpass 1 trillion KRW in annual sales based on the 2021 fiscal year (March 2021 to February 2022).

The secret to sustainable growth without excessive losses lies in utilizing existing store assets. Homeplus currently operates a total of 377 stores as logistics hubs, including 123 large supermarkets nationwide and 254 Homeplus Express stores. This means that 80% of the total 470 stores are used as logistics hubs.

Since October 25, Homeplus has been piloting the 'Homeplus Seven Order' service at its Yeongdeungpo and Yeongtong stores. By extending the same-day delivery reservation deadline from 2 PM to 7 PM and delivery time until midnight, the average daily online sales at Yeongdeungpo and Yeongtong stores increased by 15% and 17%, respectively, compared to the previous four weeks within just one month of launch. Homeplus plans to expand the Seven Order service to 22 major stores in key cities nationwide by the end of this year.

Homeplus entered the delivery competition to secure differentiated competitiveness in the fresh food market. From January to October this year, Homeplus's online fresh category sales grew by 16% compared to the same period last year. This success is largely attributed to the 'Fresh A/S' quality innovation system introduced in March 2018 after MBK Partners' acquisition. Aiming for 100% quality satisfaction, the monthly average return rate is only 0.01%. By improving the entire distribution process from harvest, packaging, transportation, and display at the production site to the customer's table, while eliminating waste such as time and costs involved in exchanges and refunds, Homeplus has also secured cost competitiveness.

Kim Seong-il, Head of Mobile Fulfillment at Homeplus, said, "We plan to continue smart investments from a long-term perspective with our unique Mart Direct Delivery know-how and optimized systems," adding, "We will secure an advantage in the e-commerce competitive landscape through business structure reform reflecting trends and strengthening delivery competitiveness."

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