CU, 2024 Convenience Store Keyword is H.I.G.H.E.R... "Creating New Demand"

Strengthening Store Competitiveness and Differentiating Customer Experience

CU announced on the 18th that it has set the keyword for the convenience store industry's outlook in 2024 as ‘HIGHER’.

‘HIGHER’ embodies CU's unique differentiation strategy to respond to the rapidly changing consumer environment and lead trends in the distribution industry. It is summarized as Hyper-class (strengthening store competitiveness), Innovation (product and marketing innovation), Great experience (differentiating customer experience), Hybrid channel (online and offline integration), Export (expansion of overseas business), and Role expansion (strengthening public roles).

This year, CU continued to expand sales at existing stores and steadily open new stores. It achieved cumulative sales of KRW 6.1076 trillion and an operating profit of KRW 191.9 billion in the third quarter. Next year, CU plans to develop prime stores based on thorough commercial district analysis to strengthen store competitiveness and focus on maximizing store profitability.

CU will also work on improving store operation efficiency by utilizing digital and IT technologies. To this end, CU has established the BI (Business Innovation) team, a permanent innovation organization directly under the CEO, and will focus on enhancing the business competitiveness of franchise stores.

CU plans to expand its customer base through differentiated products and marketing that create new demand. The alcohol TFT established last year has been promoted to the alcohol team this year, focusing on differentiated alcoholic beverages centered on trendy product groups such as highballs and whiskey, while strengthening alcohol services across both online and offline channels.

CU will also focus on creating spaces that provide customers with differentiated experiences. This year, flagship experiential stores embodying the brand worldview were opened at Olympic Park and Everland, and stores specialized in alcohol and ramen also function as brand communication channels by offering differentiated concepts and new experiences. The existing NCS (New Concept Store) team has been reorganized into the Retail Tech team to continue developing future convenience stores applying the latest IT technologies such as drone delivery, artificial intelligence, fintech, and IoT.

By strongly integrating online and offline channels, CU will also secure competitiveness in online business. Since the full renewal of PocketCU last year, CU has collaborated with various sectors such as finance, entertainment, and e-commerce, driving increased sales at offline stores. Additionally, the existing marketing team has been reorganized into the brand marketing team, aiming to create CU brand enthusiasts through online content that enhances brand storytelling with fun elements.

CU will continue to expand its overseas business. In the first half of next year, it plans to open its first store in Kazakhstan, a Central Asian country, seeking to expand the K-convenience store brand.

CU will also strengthen its public role. Through the child disappearance and abuse prevention reporting system ‘iCU,’ more than 160 children and others have returned to their families so far, and emergency relief activities in cooperation with the Ministry of the Interior and Safety and others have been conducted more than 80 times, fulfilling its role as a public infrastructure.

Min Seung-bae, CEO of BGF Retail, said, “As Korea’s number one convenience store, we will raise the status of Korean distribution not only domestically but also overseas.”