”CU” records first profit in Mongolia, first Korean convenience store to expand overseas - Korean media

BGF Retail, which operates South Korea's major convenience store chain CU, expects to achieve sales of 286.1 billion tugriks (12.8 billion yen) and operating profit of 9.6 billion yen in Mongolia in the first half of 2024.
The company announced that its sales reached 100 million tugriks (approximately 430.68 million yen). The company is the first Korean convenience store chain to achieve a profit in a local market, which began expanding overseas in 2018.
The company signed a master franchise agreement with Premium Nexus and became the first Korean convenience store to enter Mongolia. As of July, the number of CU stores operating in Mongolia had increased to 400.
Premium Nexus was listed on the Mongolian Stock Exchange in 2021 and is ranked within the top 10 local companies in terms of market capitalization.
BGF Retail attributes its success in turning a profit in Mongolia to the scale and quality of its local operations.
He cited a "two-track" strategy of expanding the business by sharing the operational know-how of "CU" and providing consulting on building business infrastructure.
A digital packaging system was introduced to the local logistics center. In addition, the company is promoting its Koreanization strategy by exporting popular products such as craft beer and cream buns, as well as Mongolian-style steamed dumplings.
The company has attracted customers by developing localized products such as "Boz" and fried dumplings "Hoshour."