CU opens first store in Kazakhstan

A customer shops at CU Astana Square in Kazakhstan, which opened on Wednesday [BGF RETAIL]

CU launched its first outlet in Kazakhstan on Wednesday, becoming the first Korean convenience store chain to operate in Central Asia.

The CU Astana Square branch is the product of a master franchise agreement that BGF Retail, CU's parent company, signed with CU Central Asia, a subsidiary of Kazakh enterprise Shin-Line. The agreement entitles BGF Retail to royalties while granting its Kazakh partner brand rights, business operation rights and permission to open the store.

“We will introduce Korean instant cooking staples like tteokbokki [spicy rice cakes] and fried chicken,” BGF Retail said Thursday. “We will also install amenities, such as ramyeon cooking machines, and supply stores with Korean street food like corn dogs and samsa, a Central Asian specialty.”

The company hopes to meet demand for Korean-style convenience stores in Kazakhstan, where small-scale distribution channels lag behind large supermarkets. The company plans to transform its store into a unique “meeting place,” providing spacious rest areas and clean bathrooms in its stores and offering a diverse range of food choices.

It will open two additional stores in Almaty this month; it plans to operate 50 stores in Kazakhstan by year's end and 500 within five years.

“I hope that CU's historic debut in Kazakhstan will pave the way for it to become the leading convenience store brand in the country and fulfill its role as a key export channel for Korean small- and medium-sized enterprises,” said Hong Jung-kuk, vice chairman at BGF Retail.

Shin-Line, Central Asia's largest ice cream manufacturer with 40 percent market share, is led by Andrey Shin, a third-generation Koryoin.

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