CU Opens 600th Store in Mongolia After 8 Years of Expansion

Convenience store chain CU is accelerating its market penetration in Mongolia, having opened its 600th store after nearly eight years of operation.

BGF Retail, which operates CU, announced on July 9 that it opened the Hotaqundur Som store, its 600th location in Mongolia, on June 26 in the Bulgan Aimag region. The opening ceremony was attended by Jin Young-ho, head of BGF Retail's product and overseas business division, Yoo Seon-woong, head of the overseas business office, and Adilbishi, chairman of the Premium Group.

The Hotaqundur Som store is located approximately 600 kilometers west of Ulaanbaatar, the capital of Mongolia. Covering about 85 pyeong, it primarily serves tourists and long-distance truck drivers. In addition to standard convenience store offerings, it features shower facilities for long-distance travelers, a response to the lack of social infrastructure in Mongolia, where CU has received positive feedback for installing public restrooms in many of its stores.

CU entered the Mongolian market in 2018 by signing a master franchise agreement with the Premium Nexus Group, becoming the first convenience store chain from South Korea to do so. Since then, the number of local stores has increased from 56 in 2019 to 541 last year, surpassing 600 last month.

In Mongolia, CU is focusing on localization strategies and leveraging the popularity of K-Food. The store offers local delicacies such as buuz, a type of steamed dumpling, and khoshur, a traditional fried dumpling, while also exporting Korean snacks like cream bread and ramen to expand its consumer base. Recently, it has opened over 50 K-Beauty specialty stores where customers can experience and purchase Korean cosmetics.

With the opening of its 600th store, BGF Retail plans to strengthen CU's position as a lifestyle platform in Mongolia. Jin Young-ho stated, "In the future, CU will lead the Mongolian retail market by embracing various social values, including food innovation, eco-friendly infrastructure, and community coexistence."

Additionally, CU entered the U.S. convenience store market last November with its first store in Hawaii. The company plans to expand its presence in Hawaii, focusing on major tourist areas and upscale residential neighborhoods.