Homeplus is grappling with poor sales and difficulties in mergers and acquisitions (M&A). As consumer interest wanes since its reopening, there are concerns that if a buyer for a complete sale is not secured by the end of this month, a split sale of stores and real estate assets may become unavoidable.
According to the retail industry on the 11th, Homeplus's sales at the beginning of this month were only at 30% of its target. This marks a decline from a 40% achievement rate in mid-September. From October 3 to 5, daily sales were in the 3 billion won range, a significant drop from the 10.628 billion won recorded on the first day of reopening on August 13.
The decrease in sales appears to be influenced by a reduction in 'supportive shopping' activities that followed the reopening, as well as the withdrawal of key tenants like Olive Young and Daiso, which has led to a decline in customer traffic. Amid ongoing financial difficulties, Homeplus is offering voluntary retirement without additional severance pay, contingent on the payment of overdue wages, Chuseok bonuses, and retirement benefits.
Currently, Homeplus is pursuing a plan to sell its entire retail business, including 67 owned stores, along with its headquarters. The sale's lead advisor, Samil PwC, has sent out investment proposals and aims to find potential buyers by the end of this month, but no clear candidates have emerged yet.
If the complete sale fails, alternatives being considered include transferring profitable stores to other retailers or selling real estate assets individually. However, if individual store sales proceed, it could lead to increased job insecurity. As of last month, there were 9,121 Homeplus employees based on National Pension Service enrollment.
A Homeplus representative stated, "Both the company and the union understand that M&A is essential for survival," adding that if no potential buyers emerge, a split sale may be a viable alternative.
The Homeplus branch of the retail union issued a statement promising to uphold their commitment to facilitating M&A and urged the government to take direct action in finding buyers.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.