CU, a leading convenience store chain, proudly announced Thursday that its presence in Mongolia has officially surpassed 600 stores. This significant milestone comes just eight years after the brand initially entered the Mongolian market, showcasing remarkable growth and market penetration.
The strategically located 600th store, Khotol Undur Soum, is situated along the main highway leading to Lake Khuvsgul, one of Mongolia’s most renowned tourist destinations. Designed to cater specifically to the needs of travelers and long-haul truck drivers, this unique roadside convenience store not only offers a comprehensive range of standard products but also provides essential shower facilities, enhancing convenience for its patrons.
CU’s expansion trajectory in Mongolia has been impressive. Starting with just 21 stores in its inaugural year, the network rapidly grew to 103 outlets by 2020 and further expanded to 541 by 2025. By June of this year, the total number of CU convenience stores in Mongolia exceeded 600, extending its retail footprint significantly beyond the capital city of Ulaanbaatar and into 16 diverse regions across the country.
Innovating for a sustainable future, CU’s new Khotol Undur Soum store integrates a “Green Station” concept. This makes it the first convenience store in Mongolia to incorporate both solar power facilities and electric vehicle (EV) charging stations, emphasizing the brand’s commitment to eco-friendly infrastructure and sustainable retail practices.
CU established its presence in the Mongolian market in 2018 through a strategic master franchise agreement with the Premium Nexus Group. Since the inception of this partnership, CU has provided extensive support to its local counterpart, including dispatching Korean specialists in critical areas such as merchandising, quality control, and store operations, alongside offering comprehensive consulting services to foster robust business development.
In parallel, Premium Nexus has significantly enhanced its operational capabilities, establishing a state-of-the-art food production center with a capacity to produce up to 80,000 ready-to-eat meals. Last year, the group further expanded its ambient distribution network by adding two new warehouses. To boost logistics efficiency and streamline store operations, Premium Nexus has also successfully adopted Korea’s advanced digital picking system and BGF Retail’s proprietary global IT platform.
CU’s successful product strategy in Mongolia is characterized by a thoughtful blend of popular Korean convenience store items and authentic local tastes. The chain has successfully introduced its well-received private-label Get Coffee brand, cream bread, instant noodles, and smoothies. Simultaneously, it has invested in developing ready-to-eat versions of cherished Mongolian culinary favorites like buuz and khuushuur, ensuring a diverse and appealing product assortment for local consumers.Further diversifying its offerings, the retailer has established over 50 dedicated K-beauty zones across its Mongolian stores. Additionally, CU actively exports facial masks specifically developed and tailored for the unique characteristics of the Mongolian market, catering to the growing demand for Korean beauty products.
“CU has evolved beyond merely a retail outlet; it has become a dynamic lifestyle platform, fundamentally transforming the daily lives and cultural experiences of Mongolian consumers in collaboration with our esteemed partner, Premium Nexus,” stated Jin Young-ho, the head of merchandise and overseas business at BGF Retail.
“Our unwavering commitment is to continue leading Mongolia’s dynamic retail market by pioneering food innovation, expanding our eco-friendly infrastructure, and consistently creating shared value within local communities,” he added, outlining CU’s future vision for sustainable growth and community engagement in Mongolia.
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