Homeplus’ online sales top 1 trillion won in 2023

Panoramic view of Homeplus

South Korean big box store chain Homeplus Co. saw its online sales top 1 trillion won within the shortest period for the fiscal year 2023—between March 2023 to February 2024—the company said on Thursday.

Homeplus’ online store showed an average 20 percent annual sales growth over the past five years, leading to over 1 trillion won in sales for three consecutive years since the fiscal year 2021. In the fiscal year 2023, online sales in particular surpassed the 1 trillion won mark during the third quarter of the fiscal year.

Thanks to the steady growth, the proportion of online sales also grew to about 15 percent as of the 2022 year-end results from 7 percent in 2017.

The number of customers in their 20s and 30s grew by 30 percent compared to three years ago, which also enabled the retailer to expand its customer base.

Homeplus attributed the online growth to its physical store-based customized delivery service, which focuses on convenience, speed, and efficiency.

Homeplus uses 80 percent of its nationwide big box stores and supermarkets as logistics hubs for its online store. The nearby logistics system enables same-day and immediate delivery in most regions nationwide. A significant advantage is that customers can choose their desired delivery time and type.

The company also expanded its online food product competitiveness, which also proved effective. Homeplus online has a “cold chain” system in place in the pre-delivery stage to maintain the highest level of freshness for its food products.

Sales of food products account for 90 percent of the retailer’s online store, significantly surpassing that of offline stores at 70 percent, and sales in categories such as livestock, fruits, and health supplements are also driving overall performance.

The retailer forecasts that it can hit 2 trillion won in online sales within the next three years if the current trend continues.

“By leveraging our offline expertise, we’ll optimize our online capabilities to provide the most convenient online shopping experience for customers,” according to Lee Tae-shin, head of the retailer’s online business division.