Customers line up to pay at the 600th CU store in Mongolia, ‘Hotak Undur Sum branch’. Provided by BGF Retail

Convenience store chain CU has opened its 600th outlet in Mongolia eight years after entering the market. This is the first time in the Korean retail industry that a company has opened 600 stores in a single overseas country.

On the 9th, according to BGF Retail, which operates CU, the company signed a master franchise agreement with Premium Nexus Group in 2018 and, as the first in the Korean convenience store industry, entered Mongolia. After reaching the 100th store in 2020, the 200th in 2022, the 300th in 2023, the 400th in 2024, and the 500th last year, a total of 603 CU stores are currently operating in Mongolia.

The 600th CU store in Mongolia, ‘Hotak Undur Sum branch’, is located in Bulgan Aimag, 600㎞ west of the Mongolian capital, Ulaanbaatar. It has a floor area of about 85 pyeong. Situated near the highway toward Hopsugol Lake, a leading tourist destination in Mongolia, its main customers are tourists and long-haul drivers. A notable feature is the provision of shower facilities for these users. Adopting an eco-friendly store concept, it is the first convenience store in Mongolia to introduce solar power generation facilities. An electric vehicle charging station and a sales area for local food have also been set up. Prime Minister Nyam-Osor Otsral of Mongolia has stated that eco-friendly stores like this will be adopted as a nationwide retail standard.

From the early stages of its entry into Mongolia, CU dispatched domestic specialists to oversee all aspects of operations, including merchandise, quality control, and facilities. It applied the Korean digital picking system to local logistics centers in Mongolia and introduced the BGF global IT system. It promoted Korean foods such as coffee, cream bread, instant noodles, and made-to-order smoothies. It also succeeded in commercializing Mongolian items such as boz, a steamed bun, and hoshor, a traditional fried dumpling, as convenience store products. Around 50 stores have been arranged as K-beauty specialty outlets, enabling customers to try and purchase Korean cosmetics.

Including Malaysia (184), Kazakhstan (65), and Hawaii (3), CU operates more than 850 overseas stores.