"Can the Chicken King Take on Neighborhood Supermarkets?" ... Will Homeplus Express Rebound Under Harim? [Issue Analysis]

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[Financial News] The court has once again extended the deadline for approving Homeplus' rehabilitation plan, giving the company some breathing room after a period of uncertainty. At the same time, industry views remain divided over whether the sale of Homeplus Express, the SSM division that became a key factor in the extension, will actually prove effective.
According to industry sources on the 5th, the Seoul Bankruptcy Court pushed back the approval deadline for Homeplus' rehabilitation plan, originally set for the 4th, to early July. The court said the plan needed a better chance of being carried out, given that the sale process for Homeplus Express is under way. Homeplus Express has selected NS Shopping under Harim Holdings as the preferred bidder and is now moving toward signing a Stock Purchase Agreement (SPA).
Industry watchers expect the SPA to be signed within this month, with the sale possibly completed in June. However, NS Shopping has maintained that "no official schedule has been confirmed." If the sale goes through, Homeplus Express is expected to be reshaped into a key platform for Harim's retail expansion.
At the heart of the acquisition plan is food competitiveness. Harim has strengths in agricultural and livestock distribution as well as Home Meal Replacement (HMR), and it aims to create synergies with its SSM business based on those capabilities. One industry source said, "Harim is likely to try to differentiate itself by putting food-centered competitiveness front and center," adding that it appears likely to launch aggressive promotions built around its own brands and product lines, including The Misik.
If the acquisition is completed, Homeplus Express's store locations and operating structure are expected to be its biggest strengths. An industry source said, "Homeplus Express stores are located in prime commercial areas and already have an HMR-focused store structure, so some synergy can be expected if they are combined with Harim's food competitiveness." As of last year, Homeplus Express maintained its No. 3 position in the industry with about 300 stores nationwide. In particular, its small-format stores, averaging 165 to 230 square meters, or 50 to 70 pyeong, are located in major commercial districts, which makes them relatively efficient in terms of sales. Its previous efforts to specialize in HMR, along with the related facilities already in place, are also seen as factors that could support a combination with Harim.
Still, some remain skeptical because of the company's lack of offline retail experience. NS Shopping has strengths in online-based distribution, but it has relatively little experience operating physical stores. Another industry source said, "The SSM market has been rapidly reshaped around quick commerce and price competitiveness, and a new entrant will need time to adapt to that environment," adding that "it will not be easy to secure competitiveness in a short period compared with the operational know-how accumulated by existing players."
Employment succession and supplier issues are also being raised as challenges. Analysts say the key to business stability will be how existing workers are retained and utilized after the acquisition. An industry source said, "In a situation where offline experience is limited, absorbing the know-how of existing employees will become important," adding that "how the existing fresh food partners of Homeplus Express are reorganized will also be a crucial issue."
Some say the acquisition could allow Homeplus Express to return as the industry's No. 3 SSM operator. But another industry source warned that "the Homeplus brand value has weakened amid the recent turmoil, so the possibility of franchisees leaving must also be considered," noting that competitiveness cannot be judged simply by store count.
localplace@fnnews.com Kim Hyun-ji Reporter