Olive Young's Global Expansion and Growth

CJ Olive Young is focusing on enhancing large flagship stores and expanding its overseas business rather than increasing the number of its physical stores. This is analyzed as a shift in its growth strategy, moving away from nationwide store openings to strengthening experiential and tourist-oriented stores domestically while targeting the US market abroad, a 'two-track' strategy.

As of the end of the first quarter of this year, Olive Young had 1,369 stores, a decrease of 10 compared to the same period last year. However, sales increased by 24.5%, continuing its growth trend. This is interpreted as a result of a strategy that focuses on per-store productivity, online integration, and increased demand from foreign tourists, rather than expanding the number of stores.

Olive Young is renewing small stores whose leases have expired or is expanding 'town stores' of over 200 pyeong in key commercial areas with concentrated demand. For the Gwangjang Market and Anguk Station branches, the proportion of sales to foreigners reached 79% each, demonstrating a redefinition of the role of offline stores as 'experiential and tourism hubs.'

Among Olive Young stores frequented by foreign customers, the proportion in non-metropolitan areas increased from 27% in 2023 to 52% this year. This suggests that as the spending stage for foreign tourists spreads to regional tourist destinations such as Jeju, Busan, and Gyeongju, the 'hub' strategy centered in Seoul is expanding to provincial cities.

Based on its branding and purchasing data for foreign visitors accumulated domestically, Olive Young has officially entered the US market. It simultaneously opened its first US offline store and a US-exclusive online mall in Pasadena, California, and aims to open five stores in the US within the next year.