CU convenience store chain to open in Vietnam
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South Korea’s CU convenience store chain will expand its footprint to Vietnam, its second international market after Mongolia.
BGF Retail, the operator of CU, signed a master franchise agreement with CUVN, a Vietnam-based convenience store operator, on Tuesday. CUVN will be in charge of investment and operations in Vietnam market as BGF Retail contributes its brand and business background.
BGF Retail and CUVN plan to open their first store in Vietnam by June next year.
Park Jae-koo, CEO of BGF Retail, said the company will continue to expand internationally making forays into growing emerging markets.
With the new expansion, the South Korean convenience store operator expects to gain a strong position in the Southeast Asian market as Vietnam’s economy has witnessed significant growth during recent years.
Rival network GS25 has already launched in Vietnam, opening stores in Ho Chi Minh City.
Questions & Answers
Q.Which company will handle the day-to-day running and financial outlay for CU stores in Vietnam?
Which company will handle the day-to-day running and financial outlay for CU stores in Vietnam?
CUVN, a Vietnam-based convenience store operator, will be responsible for both the investment and daily operations of the CU stores in the Vietnamese market. BGF Retail will provide its brand and business expertise.
Q.When is the first CU convenience store expected to open its doors in Vietnam?
When is the first CU convenience store expected to open its doors in Vietnam?
BGF Retail and CUVN have made plans to open their inaugural CU store in Vietnam by June of next year. This is a significant step in their international expansion strategy.
Q.Why has CU chosen Vietnam as its next international market for expansion?
Why has CU chosen Vietnam as its next international market for expansion?
CU's operator, BGF Retail, sees Vietnam as an emerging market with a rapidly growing economy. This expansion aims to secure a strong position in the Southeast Asian retail sector.
Q.Is CU the first South Korean convenience store chain to enter the Vietnamese market?
Is CU the first South Korean convenience store chain to enter the Vietnamese market?
No, CU is not the first. Its rival network, GS25, has already launched operations in Vietnam, establishing stores in Ho Chi Minh City prior to CU's announced entry.
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