products, and toys. The goods were also dis-played dierently. For example, cosmetics werearranged by brand name, while bedding andchinaware displays were charmingly decorated,unlike other TESCO stores. Wooden tiles gavethe ooring a sophisticated look, and the interi-or was lit brightly with lighting set up over eachdisplay stand. The lighting was showcased in avariety o shapes and sizes instead o standardorescent lamps. The ceiling, painted white, wascleanly fnished.Even the store’s name incorporated a departure.Ater careul deliberation, TESCO’s head ofcemade the somewhat surprising decision to add“Homeplus” to the store’s name, relecting itsheavy emphasis on non-ood, household goods.What happened was a wholesale adoption byTESCO o know-how that had been accumu-lated in running its Homeplus store, a joint ven-ture with Samsung Corporation, in Korea. Thetwo-oor layout, product line selection, productdisplay, and even the name o Homeplus wereall imported rom the Korean store. The know-how o store management accumulated in theKorean operation had been recognized as supe-rior in efciency and taken on board whole. So,what were the management secrets o SamsungTESCO – the Korean operation – that even aglobal retailer like TESCO could learn rom?
Jup to a Crowded maret Sector
In 1997, Samsung Corporation opened its irstthree retail stores, including Homeplus Taegu.However, the 1997-98 Asian inancial crisis putthe new operation in serious diiculty by May1999. The company decided to seek oreign in-vestment. At the same time, TESCO PLC wasseeking ways to expand in Asia ater successul-ly gaining a oothold in Thailand. On May 1,1999, Samsung TESCO was launched. TESCOPLC injected more than US$200 million intoHomeplus and Samsung provided US$40 mil-lion worth o goods.Even i the fnancial crisis had not occurred, theaisles were not clear or Samsung Corporation’spush into retail. E-Mart, Korea’s irst discountretailer, had a six-year head start on Homeplus,while deregulation opened the door or Wal-Mart in 1997. In 1998, the US retail giant openedin Korea by purchasing our local stores and
A nightviewof HomeplusSangdong,Bucheon