The South Korean convenience store chain, GS25, has announced a partnership with major Malaysian retailer KK Group. This collaboration will aid the company’s expansion into Malaysia.
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According to GS Retail, owner of GS25, the two businesses will build their first GS25 convenience shop in Malaysia next year as part of a “master franchise deal” in which KK Group would pay royalties to run the stores.
According to their statement, they also aim to increase the number of GS25 stores to 500 in the next five years.
Following Vietnam and Mongolia, Malaysia is the third country that GS25 has expanded into. Due to its relatively young population and expanding market for fast-moving consumer goods, Southeast Asia is seen as a viable region for local convenience store entrepreneurs.
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BGF Retail, the leading network of convenience stores in South Korea, has also recently established its 100th CU store in Perak, Malaysia. The company intends to reach 500 in the following five years. Emart 24, the fourth-largest Korean player, also operates 20 outlets in Malaysia.