South Korea's CU turns post offices into convenience stores
BGF Retail has signed a strategic partnership with Korea Post that transforms the country's 18,900 CU stores into parcel drop-off points
BGF Retail, operator of South Korea's CU convenience store chain, has signed a strategic partnership with Korea Post that transforms the country's 18,900 CU stores into parcel drop-off points for the national postal service, and opens the door to CU outlets inside Korea Post's 3,300 branch locations nationwide.
The agreement, signed on September 9 at BGF Group's headquarters in Gangnam, Seoul, came into effect the same day. Customers can now drop off Korea Post parcels at any CU store across the country, extending a pilot integration that had been running since May through CU's home collection service. International parcel services through Korea Post are planned as a next step.
The reciprocal store-within-a-store element is the deal's most significant commercial dimension: BGF Retail is exploring the use of idle space at Korea Post branches, strategically located in town centres and accessible areas, to open CU outlets. Korea Post has indicated it views the arrangement positively, as it would give its customers access to CU's convenience retail offer within post office premises.
"The networks of CU and Korea Post, spread across every corner of the country, will create powerful synergy," said BGF Retail CEO Min Seung-bae. "We will build a differentiated lifestyle platform that can be used conveniently anytime, anywhere."
