CU Mongolia Boosts Supply Chain with Major Logistics Expansion!

CU Mongolia, operated by South Korea’s leading convenience store brand BGF Retail, announced Tuesday that it has expanded its automated logistics center to enhance its supply capacity across the country.

The center, located about two hours east of the capital city, Ulaanbaatar, pioneered automation technologies in Mongolia’s retail industry when it first introduced them in 2023.

The expansion adds approximately 3,300 square meters to the existing 4,960-square-meter facility, bringing the total size to over 8,200 square meters.

It also boosts logistics capabilities with a digital picking system, enabling the center to process up to 700 orders daily.

This expansion strengthens CU’s nationwide supply chain, pushing it closer to its ambitious goal of opening 1,000 stores in Mongolia.

CU currently dominates the Mongolian market with about 490 stores, commanding a 70 percent market share as of last month.

Beyond logistics, CU Mongolia operates a ready-to-eat food production facility that opened in 2021, with plans to expand its capacity next year.

The company has also implemented an AI-powered automated ordering system across its stores to improve demand forecasting and inventory management.

“Despite Mongolia’s per capita GDP being just one-fifth of South Korea’s, CU Mongolia achieves sales on par with Korean stores, underscoring its strong position in the local market,” said Kim Tae-han, overseas business operations team manager at BGF Retail.

CU’s international footprint extends to over 690 stores, including locations in Malaysia and Kazakhstan. The company is set to make its debut in Hawaii this November.