South Korean convenience-store chain GS25 has ventured into Mongolia with three stores opened in Ulaanbaatar, the first of 500 outlets planned for the next four years.
Three Mongolian branches are GS25 Niislel near the Parliament building, GS25 Choijin and GS25 Park-Od Mall near Crystal Town.
The launch in Mongolia marks GS25’s second international expansion after Vietnam. The company signed a master franchise agreement with Mongolian company Shunkhlai, under which the South Korean company will receive royalties.
“We plan to go further than just opening stores abroad,” a spokesperson of GS Retail told the local media. “ [We] aim to spread South Korea’s convenience store culture and lay the stepping stones for GS25 to enter global markets through retail digital transformation.”
Shunkhlai Group is one of the leading conglomerates in Mongolia. The business has 12 subsidiaries, including APU which accounts for 70 per cent of the country’s liquor and beverage market.
GS25 will directly compete with its South Korean rival CU, which launched in Mongolia in 2018 and now operates more than 100 stores across the country.