South Korean c-store chain CU launches in Kazakhstan
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South Korean convenience store chain CU is setting its eyes on the Central Asian region, entering Kazakhstan under a partnership with CU Central Asia, the c-store operation arm of local ice cream manufacturer Shin Line.
CU’s first store there is set to open next year. The chain’s parent company BGF Retail said it plans to open more than 500 locations in the country in the next five years and is also considering expanding into neighbouring markets.
The company expanded into Malaysia in 2020 through a 10-year franchise agreement with MyNews. Since then, the chain has opened more than 130 stores in the country. Before Malaysia, BGF Retail also launched the CU chain in Mongolia and currently operates about 320 stores in the market.
Founded in 2012 by BGF Retail, CU is one of South Korea’s biggest c-store chains with more than 16,000 outlets as of last year, according to Statista.
BGF Retail reported a 6.5 per cent increase in net income for the first quarter of this year, reaching 27.7 billion won (US$20.6 million).
Questions & Answers
Q.Which local partner is CU working with for its expansion into Kazakhstan?
Which local partner is CU working with for its expansion into Kazakhstan?
CU is partnering with CU Central Asia, which is the c-store operation arm of the local ice cream manufacturer Shin Line. This collaboration will facilitate the chain's entry into the market.
Q.What are CU's expansion plans for Kazakhstan in the coming years?
What are CU's expansion plans for Kazakhstan in the coming years?
BGF Retail, CU's parent company, intends to open over 500 locations in Kazakhstan within the next five years. They are also looking into expanding into other nearby markets.
Q.Has CU expanded into other international markets before Kazakhstan?
Has CU expanded into other international markets before Kazakhstan?
Yes, CU launched in Malaysia in 2020 and now has over 130 stores there. Before that, BGF Retail also introduced the CU chain in Mongolia, where it currently operates about 320 stores.
Q.What is the total number of CU stores globally as of last year?
What is the total number of CU stores globally as of last year?
According to Statista, CU operates more than 16,000 outlets globally. This makes it one of South Korea's largest convenience store chains.
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