BGF Retail Co., the largest operator of CU convenience stores in South Korea, is setting its sights on Kazakhstan for extensive expansion. According to Lim Hyung Keun, managing director of the company’s overseas business department, BGF Retail intends to increase its presence in Kazakhstan to 50 stores by year-end and envisions establishing 500 outlets by 2029. This strategic decision comes on the heels of the company opening its first store in Kazakhstan in March, followed by three more within a single month, signaling a strong start in the Central Asian nation.
Kazakhstan, particularly its urbanized areas like Almaty, presents a ripe market for convenience stores, given its over 2 million metropolitan population and a dearth of proper convenience stores despite the popularity of Korean food. Notably, BGF Retail reports higher sales per customer in Kazakhstan compared to South Korea, alongside a more considerable number of customers, underscoring the market’s potential.
The introduction of CU stores in Kazakhstan brings a fresh food culture to the region, with items like kimbap becoming fast favorites among locals. BGF Retail’s proactive approach includes establishing a logistics center equipped with home meal replacement manufacturing facilities, marking a significant first in the Kazakhstani retail sector.
BGF Retail’s aggressive expansion in Kazakhstan aligns with its broader objective to boost its overseas sales by 50% to 300 billion won this year. The company’s strategy leverages the global popularity of Korean culture and food, aiming to position CU stores as both retail hubs and cultural ambassadors. This expansion is part of a larger trend of South Korean convenience store chains exploring international markets amid domestic challenges, such as a declining birthrate impacting long-term economic growth. Through its innovative approach and commitment to spreading Korean culinary culture, BGF Retail aims to not only dominate the Kazakhstani retail market but also serve as a bridge between cultures.
