GS25 and KK Group partner to foray into the Malaysian market
GS Retail, the owner of the brand, has signed a partnership with the local retail giant to achieve the chain’s arrival in the country.
Korean convenience store brand GS25 has signed a memorandum of understanding (MOU) with the KK Group to enter the Malaysian retail market. The convenience arm of GS Retail is set to open its first store next year and develop a network of 500 locations over the next five years, following the example of other Korean convenience brands that have inaugurated their own locations in the nation.
The firm will introduce its own original products to Malaysian customers and plans to provide life-friendly services that have proved their success in Korea, such as half-priced package delivery. Its partner will be in charge of local operations while the owner of the brand will receive royalty payments for licensing.
“Among Southeast Asian countries, Malaysia has the most advanced system for operating convenience stores and the greatest need to boost the business,” said an official of the company according to a report by Asia News Network.
GS25’s entry into Malaysia marks the third arrival of a Korean convenience brand into the country. According to a report by local news site Business Korea, the first one was CU through a partnership with a subsidiary of Mynews Holdings, after opening its first location in April of last year it currently operates a network of 100 sites. On the other hand, E-Mart 24 joined the market almost a year ago in partnership with United Frontiers Holdings, inaugurated its first store in June and expanded into 20 more retail locations.
Both chains have plans of expanding aggressively throughout the nation, with CU aiming to open more than 500 stores over the next five years and E-Mart 24 is seeking to inaugurate 300 new retail points during the same period. This coincides with the growth projection of the country, which ranks third in the gross domestic product per capita scale, and its demographic potential for the sector, with an average age of 28.5 years old for the entire population.
