Homeplus prepares to relaunch online shopping at 20 greater Seoul stores after DIP funding

Homeplus is preparing to relaunch its online shopping service at 20 stores across the greater Seoul area.

According to industry sources, Homeplus shared its restart plans with the Homeplus General Union in an official notice sent Wednesday. The company said it has been securing delivery vehicles and staff, though it expects to begin with a limited number of both due to capacity constraints in the early phase.

The 20 stores preparing to resume online operations are located in Yeongdeungpo, Geumcheon, Gangseo, Gansok, Seoul Namhyeon, World Cup, Sindorim, Gimpo, Incheon Cheongna, Inha, North Suwon, Yeongton, Sihwa, Pyeongchon, West Suwon, Yatap, Byeongjeom and Osan.

Homeplus said the injection of 200 billion won ($138 million) in debtor-in-possession (DIP) financing would allow it to settle some outstanding transport fees and resume online operations. The company added that it also aims to restart its hypermarket business alongside the online service.

"Given the reduction in store floor space, we plan to launch first and make adjustments as we go," Homeplus said, adding that the overall product lineup is being reviewed by its merchandise and online sales marketing divisions.

Homeplus plans to reduce each store's retail floor space to between 1,980 and 3,300 square meters and sharply cut the range of products it carries. The focus will be on food, fast-moving daily necessities and private-label goods. The company said it is modeling the approach on Trader Joe's, the American retail chain.

Homeplus held a labor-management meeting Monday to discuss its normalization plans. Immediately after the meeting, the general union relayed concerns to headquarters that the new operating model could slow workers' product-picking speed and dampen consumer purchasing power. Headquarters said "the company has already taken the concerns into account and is working to find the best approach with those factors in mind."

In a separate statement issued Thursday, the union urged swift disbursement of the DIP funds. "We are concerned that with no concrete disbursement schedule confirmed since the DIP support was approved, the prolonged suspension could extinguish any chance of recovery," the union said. "To keep the flame of rehabilitation alive, it is most urgent that we not miss the golden window for injecting the funds."