BGF Retail said the number of beauty-focused stores at its CU convenience store chain has passed 1,000, reaching a target it had set for year-end about three months early. The chain is also expanding into cosmetics under its own character intellectual property.
The beauty-focused outlets topped 1,000 as of this month, industry officials said on the 28th, double the 500 stores at the end of last year. CU had originally planned to expand the format to as many as 1,000 locations by the end of this year, but demand for cosmetics grew faster than expected.
Cosmetics sales growth at CU accelerated from 16.5% in 2023 to 20.9% in 2024, then reached 33.6% in the January-August period this year. Small-volume, value-priced cosmetics, backed by competitive prices and easy access, have won over younger shoppers, driving rapid expansion of both the product lineup and the sales base.
Building on that growth, CU is moving beyond product collaborations into a cosmetics business using its own brand IP. The company plans to launch beauty products in October featuring its CU Friends characters in partnership with the cosmetics brand Peripera. Under the arrangement, CU provides the character IP while Peripera handles product planning and release. It is the first time a convenience store operator has supplied its own brand IP to a cosmetics brand for commercialization, according to the company.
The products will be sold through major beauty retail channels including Olive Young, with plans to expand into overseas markets such as Japan and Canada. The strategy is seen as widening consumer contact points beyond convenience stores while raising awareness of the CU brand abroad.
CU has steadily expanded product tie-ups with beauty brands. In November last year, it teamed up with the personal care brand Kundal to release three items: shampoo, body wash and treatment. In September 2024, it launched three small-volume basic skincare products with Angeluca, including a water-glow mask, serum and moisturizing cream.
"Convenience store cosmetics are quickly gaining ground among younger consumers on the strength of competitive prices and accessibility," an industry official said. "Based on proven sales results, the ways they approach the beauty business will diversify further — not only expanding specialized stores but also collaborations using their own IP and moves into outside distribution channels."
CU Friends, created through a 2022 revamp, has been used in the design of CU's private brand products as well as in webtoons, emoticons, customer promotions and social contribution activities. The characters have recently served as promotional ambassadors for local festivals, broadening customer contact points.
