SEOUL, KOREA - "By 2020 we aim to become a fully integrated retail distribution company." BGF Retail president Park Jae-gu said this on April 25 at an initial public offering forum held at Seoul's 63 Building. Established in 1994, BGF Retail is currently running 7,900 "CU" stores across the country. To a concern over the company's growth prospect, BGF Retail responded by saying the convenience store market has grown an average of 15 percent a year with the size as big as 13 trillion won by the end of this year.

 

Park said, "There is so much room for growth for us given an analysis on commercial zones across the nation." The company plans to open 800 new locations this year alone. Taking into account of the locations closing their operations, the net increase number would be around 400 to 500. Last year, it opened 724 stores but the net increase number was only 1 because the company instituted an aggressive restructuring measures to shut down unprofitable operations.

 

He also said, "For the past 12 years we haven't lost the leading position in the convenience store industry and we will keep the championship title for the foreseeable future." BGF Retail accounts for 32 percent of the market in terms of sales revenue.

 

The company will begin the public subscription on its shares for two days from May 7. The public subscription volume is expected at up to 280 billion won at the per-share price of 41,000 to 46,000 won. Last year, the company posted sales revenue of 3.13 trillion won, with operating profit and net profit at 105 billion won and 70 billion won each.