Homeplus, struggling to maintain its product range due to financial difficulties, is facing supply disruptions even for popular items such as "Bomeokdwae," its barley fed pork.
Weak sales have left the retailer with insufficient funds to pay suppliers, creating a vicious cycle in which supplies of signature products are also shrinking. Meanwhile, some fresh food items that consumers do not favor remain unsold, adding to the burden of inventory management.
According to industry sources on the 20th, the inbound quantity of Bomeokdwae has decreased significantly compared to the early days after Homeplus reopened its stores. While inbound quantities vary by store, it is reported that some stores have seen a reduction of more than 50 percent compared to the initial reopening period.
Bomeokdwae is made from Canadian pork and is one of Homeplus's representative products. It is also known that inbound volumes for other popular items, such as Korean beef (hanwoo), have decreased.
The deepening financial crisis is believed to have led to supply disruptions for major items. Homeplus, which is undergoing rehabilitation proceedings, has been conducting transactions with some suppliers through prepayment or cash settlement methods. However, because sales have not rebounded, the company has had no choice but to reduce product purchase volumes.
Situations where products scheduled for inbound delivery are delayed due to unpaid settlements have occurred, and it is reported that Homeplus sales in early this month reached only about 30 percent of target levels.
While popular items face supply disruptions, some fresh food items with low consumer preference are reportedly accumulating in inventory. In the case of fresh foods, if they pass their expiration dates without being sold, they must be discarded, which can lead to additional losses.
Industry sources explained that Homeplus's inability to apply benefits from the government's agricultural and livestock product discount support program (hereinafter "Nonghal") has weakened the price competitiveness of some agricultural products.
Financial difficulties are affecting not only product supply but also workforce restructuring. Homeplus recently closed its early retirement application process at approximately 400 applicants. According to Homeplus's general labor union, while early retirement for around 1,000 employees was initially under consideration, the acceptance period was cut short due to the financial burden of having to pay severance and unpaid wages in a lump sum.
A source from the Homeplus Mart Labor Union stated, "The inbound quantity of popular items such as Bomeokdwae has decreased so significantly that they are sometimes sold out by morning," adding, "Because product payments are not being made properly, situations where additional products cannot be supplied are recurring." The source continued, "Although there is no consolation payment for early retirement, people flocked to apply because they could receive severance and other benefits as a lump sum," revealing, "The burden on the relevant funds became heavy, leading to an early termination of the process."
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