GS Retail picks Ho Chi Minh City as first overseas target
GS Retail picks Ho Chi Minh City as first overseas target
GS Retail, South Korea’s biggest convenience store franchise, was reported by Korea Herald today as saying that it will open the first GS25 outlet in Ho Chi Minh City in mid-January 2018,.
Following the launch of the first outlet in January 2018, GS Retail plans to open four convenience stores in the city in the following month. The company plans to develop more than 2,500 GS25 outlets in Vietnam within 10 years.
In July, GS Retail inked a deal with SonKim Group to establish a joint venture running the convenience store brand GS25 in Vietnam. GS Retail will invest 10 per cent in the company, while Sonkim Group will own 70 per cent.
Under the agreement, GS Retail will offer trademark rights, skills, and knowhow on convenience store chain management. In return, the joint venture will pay GS Retail royalties and dividend tantamount to the 30 per cent interest.
The venture marks GS25’s first move to expand overseas. GS Retail expects that its presence in Vietnam will become a stepping stone for its overseas expansion in China and Cambodia.
According to GS Retail, the convenience store business is highly likely to succeed in Vietnam, thanks to the country’s rising consumer demand and large population of people under the age of 35.
