This January, CU, South Korea’s top convenience store chain, opened its 50th outlet in Malaysia as part of its overseas expansion.
The opening comes nine months after CU set up its first outlet at a shopping mall in a middle-class neighborhood in the Malaysian capital of Kuala Lumpur in a tie-up with a Malaysian firm.
In October 2020, BGF Retail Co., the operator of CU, signed a brand licensing deal with Mynews Holdings, the No. 2 convenience store chain in the Southeast Asian country.
BGF Retail said sales at its Malaysian stores have tripled following their brand change to CU, with South Korean products accounting for 70 percent of their combined top line.
BGF Retail said the company and its Malaysian partner are targeting to open more than 500 stores in the Southeast Asian country within five years.
Malaysia marks CU’s second overseas market. CU currently operates some 130 stores in Mongolia after launching its first outlet in Ulaanbaatar in August 2018.
A BGF executive said the company will actively seek to tap into new overseas markets this year on the back of its successful business in Malaysia.
South Korea’s convenience store chain operators have been setting their sights overseas as the local market, dominated by three chains, CU, GS25 and 7-Eleven, has become increasingly saturated.
(Source: Korean Herald)