Homeplus Sees Sales Rebound After 12 Years... Breaks the Cycle of Decline

Sales increased by 119.9 billion KRW compared to the previous year
Operating loss recorded at 260.2 billion KRW

Homeplus has ended a 12-year decline in sales and achieved growth.

On the 9th, Homeplus announced that its sales for the 2022 fiscal year (March 2022 to February 2023) reached 6.6006 trillion KRW, an increase of 119.9 billion KRW compared to the previous fiscal year. Operating profit recorded a deficit of 260.2 billion KRW, a decrease of 126.6 billion KRW.

Exterior view of Homeplus Mega Food Market Yuseong Branch

The company emphasized the significance of breaking the cycle of negative growth that lasted for 12 years. A Homeplus representative explained, "Through a 'selection and concentration' strategy for structural improvement, we reduced the number of stores by two, and even though key stores could not operate normally during the renewal to 'Mega Food Market,' sales increased, laying the foundation for actual performance improvement."

Operating loss narrowed compared to the previous year. Homeplus analyzed, "Profit decreased due to expanded online and offline investments, strengthened marketing, and disposal of obsolete inventory." They also forecast that sales in the first quarter of this fiscal year (March 2023 to May 2023) will increase by more than 7% year-on-year, with profits expected to achieve double-digit growth compared to the same period last year.

Starting with the Incheon Ganseok branch in February last year, Homeplus renovated a total of 18 offline stores into large-scale food specialty stores called 'Homeplus Mega Food Market.' This year, they are preparing to launch 'Homeplus Mega Food Market 2.0,' which consolidates the strengths and addresses the weaknesses of the existing renewed stores.

Jaehoon Lee, CEO of Homeplus, stated, "To shift to a virtuous cycle of investment → sales increase → profit increase → reinvestment, we boldly expanded online and offline investments and strengthened brand marketing, making large-scale proactive investments to enhance competitiveness." He added, "Based on this foundation, we will prove Homeplus's sustainability by achieving a substantial leap forward this year."

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