Harim has recently made a significant decision that will shake up the retail industry landscape. It has confirmed the acquisition of . Harim, which started as a specialized chicken company and grew into a comprehensive food company, is now greatly expanding its business by directly securing offline distribution channels. This acquisition is seen by many as more than just a business expansion; it is a crucial turning point that completes the final puzzle piece of Harim’s long-cherished dream of ‘food-logistics-distribution’ .
The approved NS Shopping’s acquisition of Homeplus Express on June 12. NS Shopping had signed a contract last month to acquire the Homeplus Express business unit for 120.6 billion won and applied for a corporate merger review. During the review process, the Fair Trade Commission determined that there was little likelihood of market competition being restricted, except for chicken, Harim’s main product. Even in the chicken market, Homeplus Express’s share of the domestic supermarket market is only 2.1%, which was not considered a factor to prevent the merger.
Harim Strengthens Distribution Competitiveness to Expand ‘TheM!al’ Growth
Harim Group plans to significantly strengthen its distribution competitiveness beyond food manufacturing through this acquisition of Homeplus Express. In particular, it is expected to focus on expanding sales channels for its premium food brand, ‘TheM!al,’ and strengthening consumer touchpoints. With existing strong players having established solid positions in the instant rice and ramen markets, Homeplus Express, which has secured 293 stores nationwide, could become a new growth engine for TheM!al. This is because brand awareness and sales expansion are possible only when an environment is established where consumers can easily access products and make repeat purchases.
Re-entry into Offline Marts After 14 Years, What’s the Background?
This is Harim Group’s re-entry into the offline mart business after 14 years. Kim Hong-kuk, chairman of Harim Group, has shown an excellent ability to boldly acquire undervalued companies and grow them, earning him the nickname ‘M&A wizard.’ This acquisition of Homeplus Express is seen as Chairman Kim’s unique ‘buy low’ instinct at work again, taking advantage of the significantly lowered sale price due to the stagnant retail market and the failure of Homeplus’s overall sale. Harim is a poultry and food specialized company that has vertically integrated grain procurement, feed, livestock, slaughter, processing, and distribution. It had also entered TV home shopping and internet shopping malls through NS Home Shopping. Now, by securing offline distribution channels, it is drawing a big picture to complete the full vertical integration of ‘food-logistics-distribution.’
Impact on the Market and Harim’s Next Move?
Harim’s acquisition of Homeplus Express is expected to have a significant impact on the domestic retail market. This is not only due to changes in the existing corporate supermarket (SSM) market landscape but also because Harim Group has presented an aggressive blueprint to dominate online and offline distribution networks based on its food manufacturing and logistics capabilities. In particular, Harim launched its fresh food shopping app, ‘ODDGROCER,’ last year, establishing a system where produced products can be delivered directly, thereby targeting the fresh food market with a ‘C2C (Cut To Consume)’ strategy. Through the acquisition of Homeplus Express, it is expected to maximize synergy by linking this fresh food direct delivery system with offline stores. Attention is focused on whether Chairman Kim Hong-kuk, who has awakened his dormant M&A instincts with this acquisition, will make another bold move.
Harim Group has solidified its position as a comprehensive food company and embarked on a new challenge in the retail market through this acquisition. It will be interesting to observe how Harim will create synergy encompassing food manufacturing and distribution, and what changes it will bring to the market.