Home plus in South Korea has revealed that it will open 10 new warehouse outlet stores called 'Home plus special'.
New format a hybrid of wholesale and hypermarket
The new stores will be conversions of its 10 discount stores and are likely to be a hybrid format combining the best elements of a wholesale format, with that of a hypermarket. CEO Im Il-soon was clear to point out that Home plus' strategy was not to replicated that of E-mart Traders, the warehouse format of the market leading retailer, but to differentiate itself and create a store that could enable a complete shopping experience. The first three stores to be converted will be Home plus stores in Mokdong in Seoul, Daegu and Seobusan in Busan.
Private label to play a more important role
Home plus also intends to enhance its private label brands, Simplus and All About Food, in order to better compete with E-mart and Lotte Mart. As part of this, the retailer plans to partner with retailers in 10 European countries to improve its global sourcing and distribution network, although it did not share further details.
Home plus setting out its strategy
Im Il-soon became CEO of Home plus last October and is the company's first female CEO. Under her stewardship and following its seperation from Tesco, the business has been in a transitional period and is gradually starting to re-establish its future direction. New formats and better ranges are clearly a priority, as it looks to compete with the other heavyweights in the market, E-mart and Lotte Mart.