South Korea’s top convenience store operator BGF Retail on Sept. 25 announced that it will open its first CU outlet in Vietnam next year.
“We will actively enter emerging markets with high-growth potential to become a global convenience store company while focusing on stable growth in Korea,” BGF Retail CEO Park Jae-gu said in a statement.
The Korean company signed a master franchise contract with a local company CUVN on Sept. 24. According to the company, BGF Retail will provide brand, management system and operating know-how, while its partner CUVN will be responsible for funding and operations.
Industry sources say that this deal shows BGF Retail’s expansion overseas, to minimize the burden of injecting lots of investment and also earn royalty fees. In 2017, the Korean company signed a master franchise contract with Central Express, which is the retailing arm of Mongolian conglomerate Premium Group to enter the country.
BGF Retail also added that it will develop a new outlet with its know-how of successfully operating convenience stores in Korea and also developing a localized outlet in Mongolia. BGF Retail currently operates more than 50 CU outlets in Mongolia.
By Song Seung-hyun (email@example.com)