Emart Absorbs Emart Everyday
'Emart Family Week' for One Week Starting Next Month 1st
Integrated Product Procurement, Securing Large Quantities... Price Disruption
Emart will absorb its unlisted subsidiary, the corporate supermarket (SSM) Emart Everyday, on the 30th of this month. This integration is the first step in the offline three-company merger promoted by CEO Han Chaeyang, who became the integrated CEO of Emart, Emart Everyday, and Emart24 in September last year. Emart plans to launch large-scale discount events starting with this integration, aiming to actively improve performance through price competitiveness.
Extension of Price Destruction... 'Emart Family Week' for One Week Starting Next Month 1st
On the 27th, Emart announced that it will hold 'Emart Family Week' for one week starting next month 1st to commemorate the integration of Emart Everyday. In addition to Emart and Emart Everyday, Traders Wholesale Club (hereinafter Traders), No Brand, and Emart24 will participate in this event. These companies will offer 15 'star products' at special prices by maximizing price benefits through the offline three-company 'integrated purchasing.' An Emart official said, "'Star products' can be seen as an extension of Emart's new pricing policy 'Price Shock Declaration,' which aims to offer essential food and daily necessities at the lowest price level."
During the event, Emart will offer summer imported fruit, 'U.S. cherries,' at a price 23% lower than the usual selling price. Until now, U.S. cherries have been imported individually by Emart, Emart Everyday, and Traders through negotiations with overseas producers, but this time, the company explained that by negotiating collectively and importing about 300 tons on a large scale, the unit price was significantly lowered.
Recently, the price of pork belly has surged, but it will be sold at 32% lower than the usual price (based on 1kg of Spanish pork belly). Emart's pork buyer reportedly purchased about 180 tons of raw meat, combining the quantities from Emart, Traders, and Emart Everyday, at about 10% cheaper than the market price for this event. Then, through Emart's directly managed meat processing center, the Meat Center, customized products were made to suit the characteristics of each sales channel: 1.7mm frozen thinly sliced pork belly for Emart and Emart Everyday, and 5mm thick frozen pork belly for Traders.
During the event, popular products from Traders will also be available at Emart. At 21 Emart stores located in Gangwon, Chungbuk, Gyeongbuk, Honam, and Jeju areas where Traders is not present, seven popular Traders products, including 'T Standard Giant Kitchen Towel' and 'T Standard 3-piece Golf Balls (24-pack),' will be sold. Emart24 will introduce new products such as 'Namsan King Pork Cutlet Lunchbox' to commemorate Family Week.
Full-Scale Integration of Offline Three Companies... Enhancing Cost Competitiveness
Emart will absorb Emart Everyday on the 30th of this month and start anew as 'Integrated Emart' on the 1st of next month. This merger is part of the 'three-company integration' promoted by CEO Han. Since becoming the CEO of Emart, Emart Everyday, and Emart24 in September last year, CEO Han has unified the product headquarters and conducted integrated marketing, including joint quarterly 'price backtracking' discount events.
This merger will combine the product purchasing and logistics of large marts and SSMs. Emart's plan is to reduce costs and strengthen cost competitiveness through this. Previously, the two companies purchased products separately, but from now on, they will purchase products together in large quantities to lower costs. The Family Week event also secured cost competitiveness through this method, according to the company.
Before this merger, Emart and Emart Everyday carried out workforce restructuring. Emart Everyday accepted voluntary retirement applications from employees with more than 15 years of service from the 13th to the 24th. Those who applied for voluntary retirement will retire as of the 30th.
Emart expects to generate significant synergy starting next year after laying the groundwork this year, including organizational adjustments for integrated purchasing. In this process, integration of purchasing and logistics with Emart24, which operates convenience stores, will also be pursued. However, it is expected to take some time before a corporate merger with Emart24. An Emart official said, "We are discussing areas where we can collaborate with Emart24 in business," adding, "Nothing has been decided yet regarding company integration."
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