CJ CheilJedang to Close Bibigo Market in Japan After Two Years

CJ CheilJedang's Bibigo Market, which was positioned as a testbed for expanding K-Food in Japan, will close its doors less than two years after opening. The company introduced the experiential store to connect with local consumers, but it has struggled to achieve the expected profitability, prompting a reevaluation of its business strategy.

According to industry sources, the Bibigo Market located in Shimbashi, Minato, Tokyo, will cease operations at the end of this month. CJ CheilJedang opened the market in September 2024 on the first floor of a building housing its Japanese subsidiary, CJ Food Japan. This was the first permanent offline store for the Bibigo brand in the global market.

The store's launch followed the success of a previous pop-up store. In May 2023, CJ CheilJedang operated a Bibigo pop-up store in Shibuya, Tokyo, selling tteokbokki, kimbap, and hot dogs. The store attracted around 10,000 visitors in a month, leading the company to believe there was demand for K-Food experiential stores in Japan.

As a result, CJ CheilJedang designed the Bibigo Market as a 'grocerant,' combining a grocery store with a restaurant. The space featured a showroom for product displays, a food sales area, and dining space, allowing consumers to see and taste Bibigo products before purchasing. During lunch and dinner on weekdays, items like tteokbokki and churros sets, as well as kimbap wraps, were sold for 1,300 to 1,500 yen (approximately $13).

However, after the permanent store opened, sales fell short of expectations, revealing limitations in its business model. In particular, it failed to demonstrate a clear competitive edge in terms of cost performance, which is highly valued by Japanese consumers.

This decision comes amid declining performance for CJ CheilJedang, suggesting a need for restructuring. Last year, the company reported its first annual net loss since its manufacturing division was spun off in 2007, and in the first quarter of this year, operating profit, excluding CJ Logistics, dropped 26% year-on-year to 148.5 billion won.

A CJ CheilJedang official stated, "While additional resources could yield positive effects for the Japan Bibigo Market, we decided to halt operations after considering long-term profitability and the effectiveness of resource allocation. We plan to revamp our K-Food promotion strategy in Japan and expand consumer engagement through other channels."