Securing CAPA to Handle Logistics for Over 700 Stores
Expanding Infrastructure in Line with Store Growth
CU Mongolia Achieves First Profit Last Year
BGF Retail's convenience store CU announced on July 8 that it has expanded and constructed a large-scale logistics center in Mongolia this month, equipped with an automated system.
The logistics center is located about two hours east of Ulaanbaatar, the capital of Mongolia. In addition to the existing facility of 1,500 pyeong, an additional 1,000 pyeong was added, and a digital picking system (DPS) was established.
BGF Retail's convenience store CU announced on the 8th that it has expanded and constructed a large-scale logistics center in Mongolia this month, equipped with an automated system. Photo by BGF Retail
With this expansion, CU Mongolia has secured logistics processing capacity (CAPA) for a total of 700 stores. Previously, deliveries were centered around Ulaanbaatar, but the expansion now enables the center to serve as infrastructure for nationwide distribution throughout Mongolia.
The logistics center adopted cutting-edge technologies in 2023, mirroring Korean logistics centers, including a smart warehouse management system, a sorting and picking system, and a digital sorting system. AI-based automated ordering systems have also been introduced to stores, enabling comprehensive demand forecasting and inventory management.
Recently, as the number of CU stores in Mongolia has increased annually, the company has been expanding its infrastructure. In 2021, CU opened a ready-to-eat food manufacturing plant in Mongolia with a CAPA of about 600 stores, and plans to increase this to about 1,000 stores next year. As of the end of June 2025, CU had about 490 stores in Mongolia, accounting for nearly 70% of the country's convenience store market share.
Currently, CU is expanding its presence across Mongolia by opening numerous stores in a total of 13 aimags (administrative divisions similar to provinces in Korea), including Darkhan, Mongolia's second-largest city, as well as Khentii, Selenge, and Erdenet. Earlier this year, CU opened a store in the popular Mongolian resort area of Khuvsgul, and recently, it has been targeting highway rest areas to establish regional hubs.
Premium Nexus, CU's Mongolian partner, was listed on the Mongolian Stock Exchange in 2021 and turned a profit in the first half of last year. Since Korean convenience store chains began expanding overseas in 2018, CU is the first to achieve profitability in its overseas market.
Kim Taehan, Head of Overseas Business Operations at BGF Retail, said, "Although Mongolia's per capita GDP is only about one-fifth that of Korea, CU's average sales are comparable to those in Korea, leading the entire Mongolian retail market." He added, "CU will continue to actively pursue the establishment of a professional management system and the latest business infrastructure to drive even greater growth in Mongolia."
Meanwhile, CU currently operates a total of about 690 overseas stores, including more than 160 in Malaysia, over 40 in Kazakhstan, and its Mongolian locations. The company also plans to open its first store in Hawaii, USA, in November this year.
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