Homeplus, the nation’s No. 2 supermarket chain owned by the U.K.’s Tesco, said Wednesday that it is ready to expand its business to convenient store franchises early next year.
The retail giant said it has already received clearance from local antitrust authorities to go ahead with its plan to enter the industry here.
“A growing number of babyboomers are expected to retire in the coming years. They could profit from the franchise business with less investment, leading to more jobs here,” a Homeplus official said.
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Homeplus CEO Lee Seung-han |
“Detailed plans are still under discussion,” said the official, hinting at the possibility that Homeplus stores could put more emphasis on grocery sales.
Industry sources said Homeplus may want to find a new source of profits as the nation’s supermarket chain industry nears saturation. Related regulations have been toughened to protect smaller vendors as well.
Meanwhile, the franchise is free from such regulations and shows a full potential for further growth, sources said.
According to the Korea Association of Convenient Stores, there are 20,650 convenient stores in Korea, a 21.9 percent increase from one year earlier. The total sales exceeded 10 trillion won ($8.7 billion) for the first time this year.
More than half the market is currently shared by the top three players GS 24, Seven Eleven and Buy the Way.
By Lee Ji-yoon (
jylee@heraldcorp.com)
