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Biz News Korea(Eng)

CU signs shared growth deal with over 90% of its franchises

Collected: 2023.12.13

Distributed: 2023.12.14

Source: Go Direct

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[Courtesy of CU]

South Korean convenience store chain CU, operated by BGF Retail Co. said on Wednesday that more than 90 percent of its franchises signed the win-win deal for next year as of Tuesday.

The support plan for franchises across the country includes a range of initiatives to support the stores and improve revenues.

CU said that its supportive initiatives go beyond mere financial assistance programs.

In 2024, CU plans to broaden its support, encompassing assistance for new product launches, disposal support, and financial aid for store operating expenses.

The company said that the aid for new product introductions, which has been up to 150,000 won ($114) per month depending on the rate of new product adoption, will be enhanced starting next year to allow flexible operation based on store location.

CU also intends to maintain subsidies for returns and disposal of slow-moving products.

It also plans to invest 190 billion won by 2026 to establish a large-scale logistics center in Busan.

By Pulse

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