Emart24 to open first store in Cambodia

Industry

Published: 25 Aug. 2023, 17:38 Updated: 25 Aug. 2023, 18:54

Emart24 to open first store in Cambodia

Emart24 Vice President Choi Eun-yong, center, shakes hands with representatives from Cambodia's Saisons Brother Holding and Hanlim Architecture Group during the business agreement ceremony for Emart24's entry into Cambodia on Thursday. [EMART24]

Emart24, a convenience store chain operated by Shinsegae Group, will open its first store in Cambodia in the first half of 2024 as part of an overseas expansion as it struggles to increase its market share in the saturated domestic market.

The company signed a three-party agreement with Hanlim Architecture Group and Cambodia's Saisons Brother Holding on Thursday for its operation in Cambodia.

The company's strategy involves establishing a master franchise agreement in collaboration with a joint venture including Hallim Architecture Group and Saisons Brother Holding. Emart24 will license its branding and operational model to the proposed joint venture, tentatively named "Emart24 Cambodia," while receiving royalties in return. This approach aims to reduce the risks associated with international expansion by allowing local partners who are familiar with the situation to manage key operational aspects.

Emart24 is the first Korean convenience store chain to enter the Cambodian market. The company envisions gradually expanding its store count to 100 outlets within the next five years.

"Our focus is on establishing Emart24 as a successful presence in Cambodia while exploring opportunities for entry into various global markets," according to Emart24's Vice President Choi Eun-yong.

Emart24's chain at the shopping mall SkyResidence @ Dawson in Singapore. It is the Korean convenience store chain's third store in Singapore. [EMART24]

The expansion mirrors the trend of Korean convenience store brands gaining popularity in Southeast Asia, backed up by Hallyu, often serving as gateways for local consumers to experience Korean cuisine. Emart24 and other Korean counterpart chains GS25 and CU currently operate in Southeast Asian markets including Vietnam, Malaysia, Singapore, Mongolia, and soon Kazakhstan.

Emart24 pointed to Cambodia's high economic potential for the expansion decision.

"The decision aligns with Cambodia's notable economic potential, highlighted by its annual GDP growth rate surpassing 7 percent," Emart24 said in a press release Friday. "Our overseas business team anticipates the country's economic recovery post-pandemic and pushed to enter the Cambodian market as the first Korean convenience store chain to establish a strong presence there."

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]