MyNews Holdings Bhd, which operates about 570 MyNews outlets, plans to open CU convenience stores from South Korea.
Early 2021 launch
The licensing agreement with CU’s owner, BGF Retail Co Ltd, is for 10 years with an additional 10-year renewal term. The group will open 30 to 50 CU stores in Klang Valley next year to monitor their performance. MyNews will be spending US$7.2m to US$9.6m in capital expenditure over the next few years. The goal is to open 500 stores in five years’ time. It expects the CU stores to break even in two to three years.
MyNews and CU synergy
MyNews also has a Food Production centre which manufactures ready-to-eat products for its chain of stores. 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.