South Korea's BGF Retail launches convenience stores in Mongolia

Oyundelger 2018-08-24 02:08

Society

The opening came four months after the Korean firm signed a franchise deal with local retailer Central Express.

BGF Retail Co., the operator of South Korea's major convenience store chain CU, said it has opened six stores in Ulaanbaatar, Mongolia, as the company accelerates its overseas push amid fierce competition at home.  The opening came four months after the Korean firm signed a franchise deal with local retailer Central Express. The Mongolian firm will take charge of investments and the operation of CU outlets in the country under the agreement. Mongolia is a promising market for the convenience store business, with the number of people aged under 35 accounting for 65 percent of the total population, BGF Retail said. The companies plan to first operate stores in Ulaanbaatar and expand the brand's presence to other nearby cities after analyzing the market's reaction. South Korea's convenience store chain operators have been eyeing foreign opportunities, as the local market, dominated by three chains -- CU, GS25, and 7-Eleven -- has become increasingly saturated. In November last year, BGF Retail opened a CU outlet in Iran in the first overseas expansion for a local convenience store operator. The market size for convenience stores in South Korea surpassed 20 trillion won (US$18.2 billion) in 2016, up 18.6 percent from the previous year, according to industry data.