E-Mart, a subsidiary of Shinsegae Group, South Korea’s largest retailer, has announced its pioneering move to establish the first Korean supermarket chain in Laos, marking its strategic expansion into Southeast Asia. The company inked a significant master franchise agreement with UDEE Co. Ltd., an investment entity of LVMC Holdings under the Laos-based Kolao Group, solidifying its foothold in Laos’ burgeoning retail landscape.
Recognizing Laos’ population of 7.5 million and its predominantly small-scale retail market, E-Mart foresees substantial growth opportunities in the country. Rather than directly setting up stores, E-Mart has opted to grant operating rights to its chain stores in Laos through this franchise agreement.
UDEE Co. is slated to inaugurate the inaugural E-Mart store in Vientiane alongside three No Brand outlets in the latter half of the year. No Brand, known for its grocery and burger stores, operates under the E-Mart umbrella.
The ambitious plans set by UDEE Co. include the establishment of 20 E-Mart stores and 70 No Brand outlets over the span of the next decade, indicative of their commitment to capitalizing on Laos’ burgeoning retail sector.
Kolao Group, founded by Korean entrepreneur Oh Sei-Young in 1997, has emerged as a dominant player in Laos’ private sector, with ventures spanning automotive, banking, construction, and leisure industries. Kolao’s entry into the retail realm further solidifies its stature, with successful ventures like Kok Kok Mega Mart and Kok Kok Mini Mart serving as testaments to its retail prowess.
E-Mart’s expansion efforts extend beyond Laos, with significant presence-building in Vietnam, Mongolia, and the Philippines under franchise agreements since 2016. Notably, E-Mart outlets in Vietnam have witnessed a 3.5-fold sales surge over seven years, while Mongolian stores experienced a ninefold sales increase during the same period. In the Philippines, the number of No Brand stores has grown to 17 since its inaugural store in 2019, though specific sales figures were not disclosed.
Furthermore, E-Mart is gearing up to launch the first Korean convenience store chain in Cambodia in the first half of this year, indicating its relentless pursuit of regional market penetration and expansion.
