Emart24 Expands Overseas in First Half of Year... "Preparing First Store in Malaysia"

[Asia Economy Reporter Kim Yuri] Shinsegae Group's convenience store Emart24 is set to enter Malaysia by the end of the first half of this year. This marks Emart24's first overseas expansion.

According to the distribution industry on the 16th, Emart24 is preparing to open its first store in Kuala Lumpur, Malaysia, in the first half of the year. Recently, it signed a master franchise agreement with the local food company Mamee Double Decker to facilitate the store opening.

A master franchise is a method where the local company is granted brand usage rights and operational know-how in exchange for royalties. Convenience stores operating overseas, such as CU and GS25, also use this method. An Emart24 official stated, "We are currently undergoing internal preparations aiming for entry into Malaysia in the first half of the year."

Malaysia has a population of approximately 32.8 million and a per capita Gross Domestic Product (GDP) of about $11,000 last year, making it a market with significant growth potential for convenience stores. While purchasing power is sufficient, the number of convenience stores per capita is relatively low compared to other countries.

The current convenience store market in Malaysia is competitive with Seven-Eleven, MyNews.com, and FamilyMart. Recently, BGF Retail also opened the first CU store in Malaysia. Within ten days of opening, it attracted 11,000 local customers, averaging over 1,000 visitors per day, gaining great popularity.

As of the end of last year, the number of Emart24 stores in Korea stood at 5,165, ranking fourth after CU (14,923 stores), GS25 (14,688 stores), and Seven-Eleven (10,501 stores).