Mega Food Markets are Homeplus’ key to becoming leader of large-scale food market

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Mega Food Markets are Homeplus’ key to becoming leader of large-scale food market

Published: 31 Mar. 2023, 13:32

Homeplus Mega Food Market North Suwon branch opened last February with renewed products and customer experience. [Homeplus]

South Korean discount chain Homeplus aims to become the leading large-scale food market with notable success in its renewed grocery business.

Homeplus Mega Food Market was first introduced in February, 2022, offering customers new and diversified shopping experiences. On March 15, Homeplus explained that the market has reaped a 40% increase in profit compared to the sales in the previous year.

Six Mega Food Markets including the Ganseok branch and Olympic branch, has marked annual revenues of over 1 billion won.

The idea roots from the brand’s philosophy of the importance of customer interactive experiences when selecting groceries. Homeplus Mega Food Market displays a variety of high-quality groceries under the slogan of “having all the flavors in the world”. Over 50% of the market was devoted to foods including a wide range of groceries, convenient foods, and instant products.

Regardless of storage temperature, convenient foods are all placed in the store’s “One Stop Food Shopping” area. Likewise, the store has reoriented the layout of the isles in favor of customer needs. The market replaced its bakery and salad corners closer to its entrance, emphasizing on customer experience. Smart farm vegetables and tropical fruits are also readily provided.

Homeplus bakery “Mon Boulanger” allows customers to hand pick high-quality breads depending on preference. Similarly, “Fresh To Go” offers a customized salad individually designed to fit the needs of customers. “Food To Go” provides a total of 150 kinds of meals from all over the globe. All three corners have displayed significant increase in revenue of over 100% in comparison to that of last year.

Homeplus is constantly endeavoring to stabilize skyrocketing food prices. One of its successful projects include the 6990 won fried chicken, Dang Dang Chicken which means fair or proud in Korean, as well as the Lee Chun Sam Jjajang Ramen which provides consumers with instant black bean noodles that are worth 500 won per package. The noodles exceeded total revenue of 1.5 billion won in March 15.

Sourcing trendy and timely food options has led to an increase in sales especially among customers in their 20s and 30s. Homeplus announced on February 16 that the percentage of customers in their 20s and 30s has increased by 58% in 16 Mega Food Markets during the past year. The most recently renewed North Suwon branch displayed a 289% increase in sales among the age group from February 23 to March 15.

Homeplus has currently opened a total of 17 Mega Food Markets. The company aims to continue the success by introducing Homeplus Mega Food Market 2.0 throughout the following year. The newly designed markets will reinforce the brand’s policies for customer convenience by maximizing customer experience through innovative showcase designs and food options.

“Homeplus Mega Food Market is truly a futuristic form of purchasing designed specifically to meet the eyes of customers. This will become the key to sustainable offline market development for Homeplus,” said Homeplus official.

BY PARK YE-EUN [park.yeeun@joongang.co.kr]