Homeplus witnesses 114% surge in small product sales
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The number of single-person households in Korea is soon set to surpass 10 million.
According to the Ministry of Public Administration and Security, as of the end of last month, the number of single-person households nationwide exceeded approximately 9.98 million.
This accounts for approximately 41 percent of the total number of households in Korea.
The proportion of single-person households is 31.97 percent for those in their 20s and 30s, and 18.4 percent for those in their 60s.
As single-person households became prevalent, customers purchasing small-sized products through Homeplus’ Instant Delivery service have increased, leading to a 114 percent surge in online sales per product.
Instant Delivery is a quick commerce service, allowing customers within a 2 to 2.5 kilometers (1.2 to 1.6 miles) radius of a Homeplus Express store to receive their orders within approximately the same hour in which they placed their order.
There are 250 stores operating nationwide.
During the fiscal year which spanned from March 2023 to February 2024, total sales of small-sized products ordered via Instant Delivery increased by 50 percent compared to the same period of the previous year.
The top-selling items in Homeplus’ quick commerce sales were as follows: The meat section experienced the most significant growth at 114 percent, followed by kimchi and side dishes (111 percent), seafood (85 percent), vegetables (55 percent), meal kits (46 percent) and dried foods (45 percent).
The age groups of customers who purchased small-sized products through Instant Delivery were highest among those in their 20s, followed by those in their 30s and 60s.
The higher the proportion of single-person households in an age group, the greater interest they expressed in small-sized products.
Homeplus established the foundation for its growth in quick commerce sales through the renovation of its Homeplus Express stores, which serve as bases for the Instant Delivery service, and renovated its application based on customer data.
In November of last year, Homeplus renovated its Homeplus Express store at Hak-dong Station to specifically cater to customers from single-person households.
Taking into account the characteristics of the region which has many 1-2 person households and office workers, Homeplus enhanced its selection of Grab&Go products.
Additionally, the company strengthened its range of small-quantity food items such as meal kits alongside refrigerated and frozen foods.
It also positioned a deli corner, featuring items such as fried chicken, sandwiches, and salads, in easily noticeable locations.
In the same month, the company revealed a new User Experience/User Interface (UX/UI) of its Instant Delivery App, enhancing customer shopping convenience.
Based on customer shopping data, the company displayed menus with high inflow rates on the landing page to improve shopping speed.
The application offers a variety of useful features tailored to meet customers’ needs.
It sends notifications about discount events and cards with discount benefits.
The Quick Menu feature displays promotions for popular items and recommended products.
Information on popular searches, bundled purchase benefits, orderable hours by store and recommended products to purchase together are also provided.
BY JEONG SEONWU [jeong.seonwu@joongang.co.kr]
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