SEOUL, March 27 (Korea Bizwire) — South Korean hypermarket Homeplus said Tuesday it will push to join a European distribution network in a move to ensure customers have access to quality goods at lower prices.
The second-largest retailer in South Korea has already worked with the European distribution network whose combined annual sales are worth about 180 trillion won (US$167.4 billion).
The network is composed of major retailers in about 10 European countries, Homeplus said without elaborating.
Homeplus said it has been coordinating and building trust with the European distribution network for a formal joining of the vast distribution network.
The partnership “will be a good opportunity for Homeplus to have direct relations with European suppliers and get know-how,” Homeplus CEO Im Il-soon said in her first news conference since taking the top post at the retailer five months ago.
The formal partnership will provide price competitiveness to Homeplus as the South Korean retailer can negotiate prices with global suppliers through the distribution network, according to the company.
Homeplus, which is owned by the Seoul-based private equity fund MBK Partners Ltd., is South Korea’s No. 2 hypermarket with 142 outlets across the country, after Emart Inc. run by retail giant Shinsegae Co.
Last year, Homeplus generated 7.9 trillion won in sales, according to the company.