Homeplus was once a retail haven for millions of South Korean families who shopped for groceries and household goods regularly at its cavernous hypermarkets.
But that ritual over almost three decades ended this week when the company closed all its remaining 67 operating outlets nationwide after suspending 37 others earlier as part of its restructuring.
The sudden closure of South Korea’s second-largest hypermarket chain reflects not only its financial distress, but also a decline of the shopping model it helped popularise.
A 200 billion won (US$135 million) emergency loan approved on Thursday has given Homeplus a temporary lifeline, allowing the company to challenge a court decision that had pushed it closer to liquidation. However, it still faces questions about unpaid wages, supplier payments and above all, its business status.
The Homeplus crisis signals how online shopping and smaller households are adversely affecting the hypermarket model, according to retail analysts.
Nearly 80 per cent of South Koreans shop online, according to a 2025 survey by Statista. A separate report in May by the country’s trade ministry shows that online platforms accounted for more than 60 per cent of total sales of the country’s major retailers earlier this year.
Evolving shopping experience