CU "The Keyword for 2025 is SMOOTH... Raising Convenience Store Standards"

"Containing the Meaning of a New Leap for Future Growth"

CU, a convenience store operated by BGF Retail, announced on the 5th that it has set the core keyword for the convenience store industry in 2025, the Year of the Snake (Eulsa year), as 'SMOOTH.'

SMOOTH represents a smoothly advancing snake and signifies overcoming the uncertain economic conditions both domestically and internationally, as well as the era of infinite competition where industry boundaries have disappeared, while seeking a new role for convenience stores.

CU presents 'SMOOTH' as the convenience store keyword for 2025. Provided by BGF Retail

The SMOOTH strategy for the convenience store industry in 2025 stands for ▲Superior (development and nurturing of high-quality stores) ▲Mega-hit (differentiation of products and services) ▲Optimization (optimization of customer experience) ▲Outreach (expansion of overseas business) ▲Transition (online-offline transition) ▲Hub (strengthening of public roles).

First, CU will focus on increasing store profitability to develop and nurture high-quality stores (Superior). The goal is to present strategies tailored to each commercial district and improve store operation efficiency by utilizing technologies such as digital and IT. To this end, CU will reorganize its existing Innovation Division into the Strategic Innovation Division to enhance the competitiveness of both franchise stores and headquarters. The newly established BI (Business Innovation) team and the UX Design Lab team, which handles online operations, will be placed directly under the Strategic Innovation Division.

CU also aims to create new demand and broaden customer target groups by differentiating products and services (Mega-hit). This year, CU introduced differentiated products such as the fresh fruit highball series and chestnut tiramisu cups. To mark the new year, CU plans to place the Strategic MD team, which determines the direction of domestic and international product strategies, and the Global Trading team directly under the Overseas Product Business Division, while moving the Online Commerce team under the Product Headquarters to integrate all products across online and offline channels.

CU will also strengthen the role of spaces that can optimize customer experience (Optimization). CU has opened new-concept stores featuring ramen, snacks, and a music library, as well as customer experience flagship stores. Additionally, through the Retail Tech team, CU plans to develop future-oriented convenience stores applying the latest IT technologies such as artificial intelligence (AI), fintech, and autonomous driving.

CU will actively expand its business overseas (Outreach). Since opening its first stores in Mongolia in 2018, Malaysia in 2021, and Kazakhstan this year, CU is on the verge of opening its 600th global store. Notably, CU’s Mongolian partner, Premium Nexus, became the first in the industry to achieve profitability and ranked among the top 10 in market capitalization in Mongolia.

CU will also secure competitiveness in O4O (Online for Offline) business through organic transition between online and offline channels (Transition). To this end, next year, the DX (Digital Experience) office and the Marketing office, which were previously responsible for online and offline respectively, will be integrated into the CX Headquarters (Customer Experience) to improve customer satisfaction.

Based on the high accessibility of convenience stores, CU will actively expand its public role (Hub), including operating the 'iCU' child missing and abuse prevention reporting system.

Min Seung-bae, CEO of BGF Retail, said, "Despite the ongoing recession, the status of convenience stores has risen to the point of leading the distribution industry. Next year, we will make every effort to firmly establish core competitiveness from the customer's perspective." He added, "As Korea’s number one convenience store brand, CU will raise the level of the convenience store industry within the sector even further."

Meanwhile, CU recorded cumulative sales of 6.4151 trillion KRW and operating profit of 185.2 billion KRW in the third quarter of this year through expanding sales at existing stores and stable openings of new stores. The number of stores this year has increased to a level similar to last year, and CU expects to reach 19,000 stores by 2025.