Homeplus Filled with '1+1' Deals, Even 90% Off Stores Are Quiet... "Is This Really the Golden Holiday?" [Report]

Two Months into Corporate Rehabilitation, Homeplus
Bold Promotions Like '1+1' and '50% Off' Continue
Ongoing Concerns Among In-store Vendors and Labor Union

'Cheer up! Homeplus.'

On May 3, at the Homeplus Gyeonggi Hanam branch in Hanam, Gyeonggi-do, the store was noticeably quiet, even though it was the first weekend of the May golden holiday. It has been over two months since Homeplus applied for corporate rehabilitation proceedings, and the number of customers visiting the store could be counted on one hand. Red banners attached to the ceiling fluttered gloomily. Out of six checkout counters, only two were staffed, reflecting the subdued atmosphere of the store.

Throughout the store that day, signs advertising discounts such as "Power Special Price," "Golden Opportunity Price," and "1+1" could be seen everywhere. In particular, the dairy section, which contains products with short expiration dates, had an entire shelf labeled "1+1," and the ready-to-eat food section was also filled with "1+1" signs.

Red "1+1" signs are posted throughout the shelves in Homeplus stores. Photo by JaeHyun Park

There were also many shelves marked "Sold Out" where all products had been purchased. In the first row of the refrigerated foods section, more than eight items were sold out, and other products had been placed in their spots. However, an employee in the processed foods section explained, "The items that are currently sold out are only temporarily out of stock," and added, "There were some recent supply issues, but now everything is running smoothly."

On the afternoon of the 3rd, at the Homeplus Gyeonggi Hanam store in Hanam-si, Gyeonggi-do. Despite being a day expected to have demand from outing customers due to the holiday, the store is noticeably quiet. Photo by JaeHyun Park

Previously, on March 4, just four days after its credit rating was downgraded from "A3" to "A3-," Homeplus applied for corporate rehabilitation proceedings at the Seoul Bankruptcy Court, and the application was accepted within half a day. This led to concerns among Homeplus suppliers about unsettled payments, and some food companies temporarily suspended deliveries before resuming them. The delivery of Seoul Milk, which had been suspended since March 20, resumed on May 2.

Since the start of the corporate rehabilitation process, Homeplus has been holding a series of discount events. Starting with the 28th anniversary event "Homeplun Is Back" (February 28-March 12), Homeplus followed up with the "Encore! Homeplun Is Back" event (March 13-16). Subsequent events included the "Founding Homeplun Customer Appreciation Festival" (March 27-April 2), "Cheer Up! Homeplus" (April 10-16), and "Homeplus MEGA Golden Week" (May 3-7).

However, customer response has been lukewarm. Kim, a 42-year-old resident of Hanam, said, "I visited the store because it seemed like there was a discount event," but added, "With the recent corporate rehabilitation issue and the lack of product variety, I don't come here often."

In fact, on this day, a clothing store near the main exit of Homeplus displayed a banner reading "Customer Appreciation Unprecedented Sale 90%" and held a large-scale discount event for Family Month. T-shirts from "NK Sports" were being sold at low prices ranging from 5,000 to 10,000 won, and T-shirts and pants from the clothing brand "Buffalo" were each offered at 19,000 won.

A clothing store near the exit of Homeplus Gyeonggi Hanam branch is holding a dramatic sale. Signs reading "SALE" are displayed everywhere, emphasizing an "unprecedented sale." Photo by JaeHyun Park

In contrast, Emart Hanam, located about 2 kilometers from Homeplus Gyeonggi Hanam, was bustling with customers. All six checkout counters were staffed, and there was a queue at the self-checkout counters. Emart held its "Goraeit Festa" mega sale during the golden holiday period from May 1 to 6. As a result, areas throughout the store, including the deli section, were crowded with customers, and the tasting booth area was especially busy. An Emart employee explained, "Customers who are out for the holiday are visiting the store," and added, "There are somewhat more customers than usual."

On the afternoon of the 3rd, Emart Hanam in Hanam, Gyeonggi-do was crowded in front of the deli corner. A tasting booth was operating at a nearby display. Photo by JaeHyun Park