Live Online Broadcast of '2022 Management Strategy Report' for Employees
Mid- to Long-Term Strategy Presentation... Focus on 'Growth' Based on Active Investment
17 Store Renovations This Year... Establishment of Specialty Stores for Wine, Toys, Electronics, etc.
Lee Je-hoon, President of Homeplus, is explaining the New Year's management strategy to employees at the '2022 Management Strategy Report' held on the 24th at the Homeplus headquarters in Deungchon-dong, Seoul. Homeplus has identified 'growth' and 'investment' as the core keywords of this year's management strategy. The plan is to make bold investments and innovations to achieve 'growth for customer recovery.'
[Asia Economy Reporter Yuri Kim] "Our company's strategic focus for this year is 'growth through customer recovery.' We will return to basics and view and decide all our actions from the consumer's perspective. We will invest where necessary and ensure improvements in areas lacking competitiveness."
On the 24th, Lee Jae-hoon, CEO of Homeplus, held the '2022 Management Strategy Report' at the Homeplus headquarters in Deungchon-dong, Seoul, and conveyed this message to all employees via a live YouTube broadcast.
At this event, CEO Lee presented Homeplus's mid- to long-term strategies and vision, and communicated the key management strategies for 2022 by department to all employees. The event was conducted in a format where the CEO and executives 'reported' to the employees, following the CEO's proposal.
CEO Lee identified 'growth' and 'investment' as the keywords for the 2022 management strategy. Emphasizing 'customer satisfaction,' he stated, "This year will definitely be the first year to break the cycle of negative growth." He added, "We will strengthen brand equity by improving customer experience and thereby drive customer growth."
The six mid- to long-term strategies announced by Homeplus on this day are ▲raising the standard of store operations ▲innovative development of flagship category products ▲aggressive expansion of online business ▲environmental improvements and future-oriented concept stores ▲Homeplus All-Line integrated marketing ▲and a vibrant and positive Homeplus culture.
CEO Lee pointed out, "Unfortunately, Homeplus has recorded negative growth in recent years due to customer attrition," adding, "While changes in the distribution environment caused by COVID-19 are a factor, insufficient fulfillment of rising consumer expectations is also a cause of poor performance." He continued, "This year, we will strive to ensure positive evaluations at every customer touchpoint with Homeplus, bringing back customers who have left and creating new customer segments who have not yet experienced Homeplus."
Accordingly, Homeplus is currently undertaking major renovations at key stores including Incheon Ganseok, Songdo, Cheongna, Jakjeon, and Seoul World Cup stores. The plan is to renew and reopen a total of 17 stores this year.
The renewed stores will be transformed into 'Mega Food Markets,' large-scale specialty food stores with an increased proportion of food displays. Depending on each commercial district, specialized category stores such as wine, toys, and home appliances will be established to enhance customers' shopping experience.
The supermarket (SSM) 'Homeplus Express' will also pursue growth through aggressive store openings and expansion of fresh and convenience food specialty stores, serving as a 'neighbor supermarket' in local commercial areas to support the shopping convenience of local customers.
Regarding products, Homeplus plans to operate direct-managed farms for the most frequently purchased representative fruits and expand customized services in the meat section, such as for beef, to innovate fresh food quality. Additionally, product expansion and display environment improvements will be made for foods that have shown clear growth due to COVID-19, such as ready-to-eat meals, meal kits, home meal replacements (HMR), and wine. Through this, Homeplus aims to raise the standard of store operations by creating stores where customers can purchase desired products anytime and enjoy a pleasant and safe shopping environment, thereby increasing the number of customers visiting Homeplus offline stores.
The online business will also enhance delivery competitiveness through aggressive investment and expand the 'All-Line' business utilizing store space.
Investments to execute these strategies will also be made. This year, Homeplus plans to invest more than three times the amount spent in 2020 in stores, products, online, and personnel.
CEO Lee requested employees' participation, saying, "If we leverage our 25 years of strength and implement this strategy together with our 20,000 employees, Homeplus will become a retail company praised by consumers and a workplace where we can all take pride and work happily."
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