15% Sales Increase This Year
Following Last Year's 17%, Two Consecutive Years of Growth
Convenient Layout and Product Development Effective
Homeplus announced on the 20th that the sales of its 'Dining Street' specialty stores, which feature over 1,000 types of meal kits and refrigerated/frozen convenience foods, grew by 15% compared to the previous year.
Key indicators of Homeplus Dining Street have been growing significantly every year. According to internal data, sales focused on convenience foods from January to October 2022 increased by more than 17% compared to the previous year, and in its second year of operation, this year's sales rose by 15% compared to last year. By product category, this year's sales of private brand (PB) meal kits grew 22% compared to the same period last year, and frozen RMR (restaurant meal replacements) grew by 75%.
The loyal customer 'lock-in' effect is also outstanding. In the past two months, 5 out of 10 loyal customers (VIP+ grade) purchased an average of about 6 Dining Street items each at Homeplus Mega Food Market. The sales proportion of customers in their 20s and 30s accounted for 30%.
Homeplus analyzed that the strong performance was due to the 'shopping flow that adds convenience to cooking,' 'product differentiation strategy emphasizing taste and quality,' and 'continuous product development efforts.'
The Dining Street stores focused on improving the store layout from a seller-centered flow to a customer-centered one. To enhance customer convenience, frozen, refrigerated, and room temperature products that were previously scattered throughout the store were integrated, reducing unnecessary walking distance by up to 20 meters. Also, through collaborations with 100 major franchises and famous restaurant brands, they expanded into frozen convenience foods and desserts, launching more than 500 new products annually, achieving external growth.
Homeplus plans to expand the assortment of differentiated product groups with high local market demand at the Homeplus Mega Food Market 2.0 Yeonsu branch, which will be renewed and reopened within the year.
A Homeplus official said, "By proving the competitiveness of differentiated products and attracting customers, we are continuously building the position of Homeplus Dining Street as a growing category," adding, "We plan to solidify its status as a leading category in the industry, transcending the boundaries of distribution formats such as convenience stores and warehouse stores."
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