Malaysia's 2nd Largest Convenience Store Chain Teams Up with CU to Chase No.1 Spot

First Domestic Industry Entry into Malaysia
First Store Opening in Early Next Year
New Store Launches Alongside Existing Store Renovations
Over 500 Stores to be Added in the Next 5 Years

Convenience store CU announced on the 12th that it will export its own convenience store business model to Malaysia, riding the wave of Korean culture's popularity. The photo shows Geonjun Lee, CEO of BGF Retail (fourth from the left), and Dang Tai Lok, CEO of Mai News Holdings (fourth from the right), posing for a commemorative photo after signing the license agreement for CU's entry into Malaysia. Photo by Geonjun Lee

[Asia Economy Reporter Cha Min-young] Convenience store CU is exporting its own convenience store business model to Malaysia, riding the wave of Korean culture's popularity.

BGF Retail, which operates convenience store CU, announced on the 12th that it has signed a brand license agreement with MYCU Retail, a subsidiary of Malaysian company MyNews Holdings, and will enter the Malaysian market for the first time in the industry.

MyNews Holdings is a CVS (convenience store) specialized company that has been operating local convenience stores in Malaysia since 1996. As of October, it owns about 600 stores, ranking second in the Malaysian convenience store industry and first among local brands.

The first CU store in Malaysia is scheduled to open in the first half of next year, aiming to start with 50 new stores in the inaugural year 2021 and increase by more than 500 stores over the next five years to become the industry leader. Along with opening new stores, existing MyNews.com stores will gradually be converted to CU.

To this end, BGF Retail will send the CU Overseas Business Task Force (TF) team to Malaysia next month to begin building a convenience store model and system optimized for the local retail distribution market.

BGF Retail President Lee Geon-jun said, “This entry into Malaysia is the first case of exporting CU’s brand and know-how to a local CVS company, meaning that Korean convenience stores are being recognized on the global stage. The synergy between CU’s expertise and the partner company’s experience will stabilize the business faster and stronger, allowing us to compete confidently with global companies.”

Meanwhile, the Korea International Trade Association (KITA) played a significant role in CU’s entry into Malaysia. While searching for partners in various countries, KITA connected them with Malaysia’s MyNews Holdings in May, and the contract progressed rapidly within about four months. The recent rise in Korean Wave popularity in Malaysia has also accelerated the partnership.