Harim Group Eyes Retail Expansion with Homeplus Express Acquisition

The potential acquisition of Homeplus Express by NS Home Shopping, a key affiliate of Harim Holdings, marks a significant strategic move for the Harim Group as it pursues its ambition to become a comprehensive food specialist.

Harim, already a dominant force in the agricultural and processed food sectors, has long sought to integrate its supply chain with a robust offline retail presence. The existing network of Homeplus Express stores, particularly those in urban centers and equipped for immediate delivery, presents an attractive opportunity to overcome the logistical limitations of NS Home Shopping's current teleshopping model. This move could allow Harim to directly connect its fresh food and HMR products with consumers, enhancing its market reach and competitiveness.

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If we sell fresh food on home shopping and deliver it to the region through Express, the synergy will be quite large.

While the synergy between Harim's production capabilities and Homeplus Express's distribution network is evident, industry observers express caution. The retail landscape in South Korea is fiercely competitive, with established players like E-mart and Coupang dominating the market. NS Home Shopping's previous foray into the supermarket business, NS Mart, ended in divestment, highlighting the difficulties of achieving profitability in this sector. The success of this acquisition will hinge on Harim's ability to effectively integrate the new assets and navigate the intense market pressures, transforming the acquired stores into a profitable extension of its food empire.

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More than 90% of Express stores are located in the Seoul metropolitan area and major cities, which are densely populated areas. Compared to competitors, we can handle more delivery volume at the same cost, making them optimal locations for quick commerce logistics centers.