South Korea's CU convenience chain enters China with Shanghai store and Tmall Global flagship

In Seoul, convenience stores are densely distributed, visible below office buildings, on residential street corners and at subway exits. Among them, CU's purple signage is particularly concentrated. In June 2026, CU, which operates more than 18,000 stores in South Korea, entered the Chinese market. CU's first physical store in China is in the preparatory stage and is planned for Shanghai; the CU Overseas Flagship Store has simultaneously launched on Tmall Global, with an initial product lineup focused on Korean-style snacks, ready-to-drink coffee and meal-replacement products, priced mainly between RMB 8 and RMB 60.

According to data disclosed by parent company BGF Retail on the Korea Exchange, CU had 18,711 stores in South Korea as of the end of 2025, giving it a market share of about 35% by store count and ranking it first in the industry. In the 2025 financial year, BGF Retail's full-year consolidated revenue reached KRW 9.0612 trillion, equivalent to about RMB 47 billion, up 4.2% year on year; operating profit was KRW 253.9 billion, with both figures hitting record highs.

Data released by the China Chain Store & Franchise Association show that the top 100 convenience store companies in China operated a total of 208,000 stores in 2025, up 5.6% year on year, as the pace of industry expansion continued to slow. By the first half of 2026, among 60 sample companies surveyed by the association, 71.7% reported a decline in customer traffic. Instant retail, snack discount stores and community group buying are diverting foot traffic from convenience stores.

In the South Korean market, CU's store network is approaching 19,000 outlets. Seoul's high population density means CU stores are also relatively concentrated; in commercial districts such as Hongdae, Sinchon and Myeongdong, it is not uncommon for two or three CU stores to appear on a single street. CU stores are small, with densely arranged merchandise. In prominent positions in refrigerated cases, the company usually places triangular rice balls, gimbap and boxed meals under its private label HEYROO, marked with red tags for "1+1" or "2+1" promotional combinations. During the lunch period, queues form at CU checkout counters near office buildings, where consumers can buy Korean-style bibimbap boxed meals and GET coffee, among other items, and heat them up themselves.

Convenience stores of just over ten square metres also handle utility bill payments, transit card top-ups and ATM cash withdrawals. During peak tourism seasons, the self-service instant noodle machines in stores can sell more than 100 servings of instant noodles a day, driving follow-on purchases of beverages and snacks. CU employs a composite model of "food and beverage plus retail plus lifestyle services." Take the Yonsei Milk Cream Bread as an example: this co-branded product, launched by BGF Retail and the Yonsei Dairy brand, had cumulative sales exceeding 100 million units as of April 2026. CU has compressed its new product development cycle to a few weeks, first testing items in selected stores and then deciding, based on data performance, whether to roll them out nationwide or discontinue them. CU's official app, Pocket CU, has several million users and is used to push information on new product launches, limited-time discounts and members-only offers, while in-store screens and posters also serve a communications function.

CU began as an agent for a Japanese brand. In 1989, South Korea's Bogwang Group established a convenience store business division; in 1990 it opened its first store, initially named Garye City Store. In 1994, it partnered with Japan's FamilyMart to establish Bogwang FamilyMart, operating FamilyMart-branded convenience stores in South Korea. By early 2012, the company was operating more than 7,000 stores in South Korea, making it the convenience store brand with the largest number of stores in the country. In 2012, Bogwang FamilyMart terminated its licensing agreement with FamilyMart, renamed the brand BGF Retail and launched its own brand CU. After becoming independent, CU concentrated its resources on private labels and the fresh food system. In 2015, CU launched its private label coffee, GET.

7-Eleven's global store network has exceeded 86,000 outlets, but in the South Korean market its store count is far below those of CU and GS25. In a business presentation disclosed by BGF Retail in August 2026, the company mentioned that second-quarter sales of seasonal products such as beverages and ice cream were strong, that private label PBICK The Kitchen ready-to-eat foods performed notably well, and that the rising share of food categories helped improve profit margins.

China's convenience store sector has developed a different competitive landscape. Competition in China's convenience store industry has shifted from store openings themselves to comprehensive competition in site selection, supply chains, franchise systems and product efficiency.

CU's entry into China currently focuses mainly on private label products and online channels, with the initial product lineup centred on Korean specialty foods. Once it moves into physical stores in the future, products such as rice balls, boxed meals, baked goods and hot food will require support from local supply chains. CU uses a store structure in South Korea featuring high density, small footprints and a strong fresh food offering; after entering the Chinese market, it will need to reassess site selection, product listings and single-store sales models.