이 기사는 2022년 06월 14일 08:01 thebell 에 표출된 기사입니다.

BGF Retail is stepping up efforts to strengthen its presence in Mongolia.

BGF Retail, which operates CU convenience store chain, entered the Mongolian and Malaysian markets in 2018 and 201 through master franchise contracts with local firms. Under the contract, the master franchisor hands over control of franchising activities in a specified region to a person or entity.

When CU entered Mongolia, the country lacked convenience stores with a systematic sales system and infrastructure for related businesses.

Mongolia, however, was seen as a promising market for Korean convenience store operators given the number of people aged under 40 taking up nearly 70% of the total population. Most of the population was also concentrated in Ulaanbaatar, the capital city of Mongolia.

It actually took the company about 26 months to open its 100th outlet in the country, while it only took 18 months to open its 200th outlet.

CU is currently the No.1 convenience store brand in Mongolia with a market share of over 74%. Around 1,000 people visit CU stores in Mongolia on average every day, which is about three times more than the number of visitors at its stores in Korea.

CU made forays into the Mongolian market through a franchise deal with local retailer Central Express. BGF Retail purchased a 9.9% stake in Central Express in November 2019 and acquired additional 50.83 million shares in June 2021.

CU’s growth has helped Central Express to increase its revenue and list its shares on the Mongolian Stock Exchange in November 2021. Central Express raised 40.1 billion Tugrik in the country’s largest ever IPO.

BGF Retail plans to introduce its BGF global IT system in September to help its Mongolian business to maintain stable growth in the future. (Reporting by Kyu-seok Park)