ajunews Thursday,29 February 2024

Convenience store chain Emart24 to make foray into Cambodian market

By Kim Joo-heon Posted : December 22, 2023, 10:51 Updated : December 22, 2023, 11:16
Courtesy of Emart24
[Courtesy of Emart24]
SEOUL -- Emart24, the convenience store chain of South Korea's retail giant Shinsegae, will open its first store in Cambodia in the first half of 2024. To expand into the Cambodian convenience store market, the company partnered with Saihan Partners, a joint venture between Hanlim Architecture Group, a Seoul-based real estate service provider, and Cambodia's Saisons Brother Holding.

Saisons, which started its food and beverage business in 2010, has expanded its business scope into various fields such as logistics, agriculture, and construction. The group's subsidiary "Fun Food" has offered catering services for the 2023 South East Asian Games, a 13-day sports event in Phnom Penh. Hanlim is a global real estate provider that established its branch in Cambodia in 2017. 

Cambodia recorded an annual economic growth rate of 7 percent in 2019, a year before the COVID-19 outbreak. According to Emart24, the Cambodian government expects to reach a growth rate of about 6.6 percent in 2024. The nation's current population is about 17 million and around 2.3 million Cambodians live in the capital city "Phnom Penh."

Emart24 said in a statement that the company agreed with Saihan Partners on December 21 to make a foray into the Cambodian market. The contract was signed as master franchising which involves control of franchise rights in a certain region after paying a significant initial fee. After opening the first shop in Phnom Penh in the first half of next year, the number of Emart24 stores could be increased to up to 100 by 2028.

Emart24 has tried hard to gain a competitive edge in Southeast Asian regions. It operates 46 stores in Malaysia and three stores in Singapore. The company provides various Korean food menus in the two countries such as Tteokbokki, a menu of finger-sized rice cakes simmered in fiery-red spicy chili sauce. 
 
Other South Korean convenience store operators are also expanding their markets into different Asian regions. BGF Retail, the operator of the major domestic convenience store franchise CU, had 370 stores in Mongolia and 140 stores in Malaysia as of March 2023.  

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