"We will do our best to keep the shelves well stocked and bring this store back to life."
Homeplus's Gangseo branch in Gangseo-gu, Seoul, resumed normal operations Thursday at 10 a.m. CEO Jo Ju-yeon was on the floor to greet customers and repeatedly thanked shoppers for coming. "Seeing the lines form again like before is deeply moving, and I am grateful," Jo said. "We will work hard. We are also consistently developing our own private-brand products."
A long queue had already formed outside the store 30 minutes before opening. By the time the doors opened, about 130 people were waiting on the second floor. The crowd was so large that shopping carts ran out entirely — something staff said had never happened before. The meat counter drew the most traffic after opening, with shoppers competing to grab American and Australian beef marked down 50 percent. Some products sold out within 20 minutes.
Kim, 73, who was first through the doors, said he had arrived 30 minutes before opening. "I'm happy to see the shelves so full," he said, adding, "I really hope this place doesn't disappear and comes back for good." A store employee also noted the improvement: "There's a bit less than before, but so much more has come in over the past week. It's also great to have about 70 staff back at work."
The shelves, which had been largely bare since Homeplus entered court receivership in March last year, were more than 90 percent stocked. The liquor and snack sections, which had remained empty even after a soft reopening on Aug. 7, were fully restocked after prepaid orders arrived. The third floor, which had previously sold electronics and clothing, remained closed as the store operated in a more compact format.
Homeplus reopened all 67 of its stores nationwide Thursday, resuming operations within about a month of the shutdown. Online sales also resumed at 59 of those locations — up from the 41 stores that had been operating before the closure. The chain suspended operations after a court ordered the termination of its receivership proceedings on July 3, leaving it short of working capital. It was able to continue the process after securing 200 billion won ($141 million) in debtor-in-possession financing, backed by a joint guarantee from major shareholder MBK Partners and MBK Chairman Kim Byung-ju.
The reopening, however, does not signal a completed turnaround. Homeplus must rebuild sales and restore trust with suppliers while maintaining normal operations. Its chosen strategy for a rapid sales recovery is a Trader Joe's-style model — a scaled-down store format with a tighter product range centered on high-turnover food items, daily necessities and private-brand products. The aim is to improve cash flow within limited financial means.
To draw customers back, Homeplus has lined up a series of promotions. Members of its Myhomeplus loyalty program will receive up to 50 percent off all domestic beef from Thursday through Sept. 4. Starting Friday through Sept. 3, its popular "Dangdang Fried Chicken" will be sold at offline stores for around 3,400 won — half the regular price. Pork belly and shoulder cuts will be discounted 40 percent, and rotating deals on meat, seafood, fruit, snacks, beverages, deli items and baked goods will offer up to 50 percent off or buy-one-get-one offers throughout the period.
Rebuilding trust with suppliers is another challenge. Attorney Kim Tae-hee of law firm Pyeongsan is forming a council to protect supplier rights — the "Homeplus Commercial Public-Interest Creditors Council" — and plans to submit a related opinion to the court this month. The group intends to consolidate 790 billion won in public-interest claims and formally demand prompt repayment and effective remedies from the court, the government and the National Assembly.
Meanwhile, the Mart Industry Labor Union held a press conference outside the store Thursday under the banner "Our neighborhood Homeplus — let's save it ourselves." Homeplus branch union head Ahn Su-yong said, "It's good to see the shelves full, but this is just the beginning."
siuu@heraldcorp.com
