| Homeplus / 'Store-based personalized delivery' helps online sales exceed 1 trillion won | |
 
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'Store-based personalized delivery' helps online sales exceed KRW 1 trillion Focusing on 'convenience, speed, and efficiency' by utilizing 80% of nationwide stores as logistics bases 2024/03  Homeplus' store-based online 'personalized delivery' is gaining attention from consumers as it focuses on convenience, speed, and efficiency. Homeplus Online has grown at a CAGR of 20% over the past five years. Since fiscal year 2021, Homeplus Online has recorded sales of more than KRW 1 trillion for three consecutive years, and in fiscal year 2023 (March 2023-February 2024), it surpassed KRW 1 trillion in sales in just three quarters. In particular, Homeplus Express, which delivers products within an hour or so, has been growing by leaps and bounds, recording an average annual sales growth rate of about 70% from February 2021 to December last year. In terms of revenue contribution, Homeplus Online's growth has also been remarkable. Homeplus Online's revenue contribution, which was around 7% in fiscal year 2017, increased to around 15% as of the end of 2022. "If we continue the current growth trend, our online sales could reach KRW 2 trillion in the next three years," said an internal Homeplus analyst. Homeplus utilizes 80% of its hypermarket and express stores nationwide as online logistics bases. This is why it is possible to deliver not only 'same-day delivery' but also 'immediate delivery' from Seoul and Gyeonggi to Gangwon, Chungcheong, Jeolla, and Gyeonggi. From the customer's point of view, they can choose the desired delivery time and type, which is more convenient than early morning delivery, where they have to wait until the next morning after ordering. Examples include 'grocery delivery tonight', which can be received before midnight on the same day if ordered at 19:00, and 'instant delivery', which can be delivered within an hour after ordering. It also reduces concerns about environmental pollution caused by excessive use of packaging materials. Homeplus also has the advantage of maximizing its current online and offline infrastructure, freeing it from the financial burden of investing in online logistics centers and operating early morning delivery. The growth of Homeplus Online is supported by its operational strategy and capability to extend the competitiveness of offline food products to online. To maintain the freshness of food and fresh food products, Homeplus Online has a cold chain system throughout all stages of picking, storage, and delivery, and has streamlined the picking process by placing products in the order of room temperature, chilled, and frozen to maintain the best freshness. As a result, the food category, which accounts for 70% of offline supermarkets, has become more popular online, accounting for nearly 90% of sales. In detail, livestock, fruits, and dry goods have grown significantly and become the top online sales items. By extending its product competitiveness to online, Homeplus has also achieved results in terms of expanding its online customer base, with the total number of 2030 customers online increasing by 30% and '1-hour instant delivery' increasing by a whopping 130% compared to three years ago. "We are optimizing our online capabilities based on our offline expertise," said Lee Tae-shin, Head of Online Business Division, Homeplus. "We will position ourselves as the 'most convenient Homeplus Online' that satisfies fast-moving online customers one step ahead." |
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