[ad_1]
A huge integrated on-off distribution company is born … GS Retail and GS Home Shopping have merged
Admission: 2020.11.11 00:32
Launched in July next year … Integrated company’s assets of 9 trillion won and sales target of 25 trillion won in 2025
Image. GS Retail-GS Home Shopping Logo (Source: Yonhap News)
GS Retail, which manages the GS25 convenience store, and GS Home Shopping, which manages the GS Shop online mall, will merge.
On the 10th, GS Retail and GS Home Shopping held their respective board meetings and announced that they have decided to merge.
After the merger, the surviving subsidiary is GS Retail and 4.22 new GS Retail shares are assigned per share of GS Home Shopping. Even after the merger, existing brands such as GS25 and GS SHOP are used as is.
The integrated company is expected to be launched in July next year following a business combination review and a general meeting of shareholders of both companies in May next year.
The integrated company has assets of 9 trillion won and annual management (sales) amount of 15 trillion won.
GS Retail explained that the merger will form a strong online and offline distribution network by adding GS Home Shopping’s online commerce capabilities to offline distribution networks such as 15,000 GS25 stores, 320 GS The Fresh supermarkets and Grand InterContinental Hotels.
Image. GS Home Shopping headquarters in Yeongdeungpo-gu, Seoul (Source: Yonhap News)
GS Retail has 14 million members and GS Home Shopping has 18 million members. The integrated branch will have 26 million members, even excluding duplicate customers, and is expected to create synergy from the merger in terms of customer acquisition.
The merger was promoted in the process of maximizing the purchasing power and the selling power of the two companies, complementing each other’s shortcomings and finding new growth engines in the retail market where competition is intensifying in the retail market where the two companies, each with their own strengths, both offline and online.
GS Retail has attempted to expand online commerce due to the stagnant number of stores and the spread of non-face-to-face consumption. GS Home Shopping, the first home TV shopping company in Korea, moved to mobile commerce by introducing the GS Shop brand as the TV viewing population declined, but as the online shopping market grew and competition intensified. has also been looking for a new growth engine.
As a result, the two companies regularly run the GS Distribution Council, in which executives from both sides have participated, since the beginning of the year, and either receive orders from the GS Home Shopping mobile application (app) or use the cold chain network. (refrigerated distribution) of GS Retail for the wine sold at the GS25 store. In 2008 GS Home Shopping prepared for the merger by collaborating with same day food delivery.
The integrated company plans to integrate online and offline channels, secure loyal customers and strengthen product competitiveness with the goal of becoming a “non-offline integrated commerce platform that drives the customer’s lifestyle.”
In addition, the company plans to develop both companies’ logistics and delivery system into a full-fledged full operation (an integrated logistics management system that performs all storage, packaging, delivery and inventory management operations) and actively seeks investment opportunities.
The integrated company aims to reach 25 trillion won in sales by 2025. This assumes an average annual growth of 10% from this year’s estimate of 15.4 trillion won (GS Retail 11 trillion won, GS Home Shopping 4 , 4 trillion won). Specifically, it plans to increase the handling amount of the mobile commerce channel, which is worth 2.8 trillion won this year, to 7 trillion won by integrating the mobile-centric distribution channels.
GS Retail Vice President Huh Yeon-soo said in a message to executives of both companies after the board of directors: “We are working together to create greater customer value by combining the business capabilities of the two companies at a time when the business environment is more uncertain and strong competition is expected “. Churches.
Ho-sung Kim, president of GS Home Shopping, said: “For 25 years since its founding, we have pioneered the television home shopping market, popularized multimedia shopping, transformed into mobile commerce and underwent transformations such as strengthening of digital capabilities “. DNA) will expand on a larger scale. “
Source link
