South Korean Retailer to Enter U.S. Market
SEOUL, South Korea — Leading South Korean convenience store brand CU, operated by BGF Retail, will open its first store in the United States through a master franchise agreement with Hawaii-based CU Hawaii LLC.
The companies plan to open the first CU store in Hawaii in October, followed by further expansion across the state in key commercial districts. This will mark the first time a Korean c-store chain has entered the U.S., reported The Korea Herald.
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Under the terms of the master franchise agreement, CU Hawaii LLC will operate the U.S. c-stores and collect royalties while leveraging the established CU brand and business model. BGF Retail CEO Min Seung-bae and CU Hawaii LLC CEO Robert Kurisu held a recent signing ceremony to formalize the agreement, according to the news outlet.
Kuriso reportedly initiated the deal following several visits to Korea. "CU is a fresh, compelling concept that fits the Hawaiian market perfectly," he said.
The CU brand's entrance into Hawaii will help meet the growing demand for affordable, high-quality food and retail services in the state, which has large Asian and mixed-ethnicity populations and hosts more than 10 million visitors each year, CU said.
The retailer plans to localize offerings through a hybrid retail model, blending Korean-style ready-to-eat meals and snacks with U.S. consumer preferences. This includes kimbap and instant ramen, plus fusion items with local inspiration like poke and loco moco. The stores will also offer retail technology such as self-checkout zones as well as optimized layouts.
Seoul-based CU operates 680 convenience stores across South Korea, Mongolia, Malaysia and Kazakhstan.
CU is the latest overseas player to enter the U.S. convenience store channel. Last fall, a subsidiary of Mexico-based FEMSA picked up Delek US Retail, whose portfolio is comprised of 249 corporate stores operating primarily in the southwestern United States.
FEMSA is one of the largest conglomerates in Mexico with operations in more than 17 countries. Through FEMSA's Proximity & Health Division it operates OXXO — the largest small-format proximity store operator in the Americas with more than 22,800 stores in five countries, including Mexico, Colombia, Chile, Peru and Brazil. It also has more than 570 OXXO Gas fuel and service stations in Mexico.