It is looking to open 500 stores in five years.
Malaysia-based convenience retail chain MyNews is planning to open CU convenience stores from South Korea, IGD reported.
The licensing agreement with CU’s owner, BGF Retail, is for 10 years with an additional 10-year renewal term. The group will open 30 to 50 CU stores in Klang Valley in 2021 to monitor their performance.
MyNews is looking to spend $7.2m to $9.6m over the next few years, with a goal to open 500 stores in five years’ time. The company expects the CU stores to break even in two to three years.
MyNews also has a Food Production centre, which manufactures ready-to-eat products for its chain of stores. IGD said the onboarding of CU stores can help to utilise its production capacity.
"CU stores will carry unique products from South Korea and likely attract different shoppers. We expect the retailer to pick locations without MyNews stores to avoid cannablisation," IGD's Senior Retail Analyst Soo-Eng Tan said.
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