A Great Achievement 30 Years After the First Store
Introduction of a Storeowner-Friendly System
Endless Transformation Including Win-Win Agreements
Overseas Expansion Accelerated in Malaysia and Others Next Year
[Asia Economy Reporter Cha Min-young] In a market so saturated that one could say there is a 24-hour convenience store even in the most remote rural corners, BGF Retail has opened the 15,000th CU convenience store. Considering that last year GS Retail and CU were neck and neck with about 13,000 stores, this means CU has increased its store count by nearly 1,000 despite the impact of the COVID-19 pandemic.
Record-breaking milestone 30 years after opening the first store
CU convenience store announced on the 30th that it has surpassed 15,000 stores globally. The 15,000th store is CU Yatap Seongyeong Branch. President Lee Geon-jun personally attended the plaque ceremony to share the celebration with employees.
BGF Retail, which operates CU convenience stores, opened its first store, Garak Siyoung Branch, in October 1990. At that time, the Garak Siyoung Branch operated under the 'FamilyMart' brand, but in 2012, BGF launched its own brand CU and changed the signage. The company plans to accelerate its overseas business as well. CU entered Iran in 2017 and Mongolia in 2018. Iran, a Middle Eastern market, was considered the most challenging, but the initial response was positive, raising high expectations internally. Unfortunately, due to external factors such as U.S. sanctions against Iran, the company ultimately withdrew, but the overseas expansion was a valuable experience. CU gained traction in Mongolia and now operates 102 stores there. This year, CU signed an export agreement with Malaysia and plans to open its first store there in the first half of next year. The company has also set a goal to increase the number of stores by 500 over the next five years.
Partnership First... Constant Transformation
CU's growth over the past 30 years is the result of consistently prioritizing partnerships with franchisees and building a franchisee-friendly system. CU introduced a new franchise model that increased the profit-sharing ratio to a maximum of 80%, the first in the industry, to strengthen franchisees' profitability and rights. It also signs annual coexistence agreements with franchisees and implements lifecycle management programs. Through the 'Clinic for CU' store sales improvement program, CU regularly provides customized consulting and offers free labor, legal, and tax consultations as well as discounted medical services.
CU has also spared no investment in upgrading its convenience store infrastructure. Over the past five years, CU has invested approximately 600 billion KRW to develop the mobile platform Pocket CU, introduce next-generation POS systems, and operate a central distribution center (CDC), resulting in a major system upgrade. Its lifestyle services have expanded beyond initial public utility bill payments, cash withdrawals, and mobile phone charging to include collaborations in finance, IT, and e-commerce. Currently, CU offers a variety of services such as delivery, insurance sales, unmanned multifunction devices, Green Save (end-of-day discounts), and subscription coupon services.
CU has continuously introduced new products and services tailored to customer needs. This year, when heavy rains damaged apple farms in Yesan, Chungnam, CU launched apple pies made from apples with reduced marketability and duck lunch boxes to support duck farms, fulfilling its social responsibility.
Lee Geon-jun, President of BGF Retail, said, "CU is demonstrating stronger competitiveness amid crises thanks to its solid profit structure, systematic sales growth drivers, and extensive franchisee support. Having achieved both internal stability and external growth over the past 30 years with unwavering dedication to customers and franchisees, CU is now poised to become a proud export brand expanding beyond Korea."
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