Olive Young expands regional flagship stores as anchor strategy for local growth

At least 43 large stores will be opened or renovated outside the capital area.

CJ Olive Young is expanding its regional flagship store network in 2026, positioning large stores as “anchor tenants” to stimulate local commercial districts, boost tourism traffic, and create youth employment across non-metropolitan areas.

The company announced it will invest 123.8 billion won in non-metropolitan regions next year, more than three times its 2023 level. The investment covers new store openings, renovations, and logistics infrastructure upgrades, with store construction spending alone rising 36% year-on-year.

Olive Young is prioritising large-scale flagship expansion, with 78 large stores (over 100 pyeong) planned for opening or renovation this year, including 43 in non-metropolitan areas.

These stores are being developed as “K-Beauty landmarks,” designed to attract both domestic and international consumers through experiential retail and region-specific concepts.

Global-focused specialty stores will be introduced in key tourist destinations such as Busan, Jeju, and Gyeongju. Large hub stores will also be concentrated in regional growth areas across the Gyeongsang, Jeolla, and Chungcheong provinces, including old downtowns and new city developments.

The company said flagship stores are being used as anchor tenants to revitalise surrounding commercial districts by increasing foot traffic.

In Daejeon, Seomyeon, and Gangneung, areas where town stores were introduced, visitor traffic in nearby commercial districts increased by an average of 25% within six months of opening.

The ripple effect is also extending beyond traditional tourist zones. In South Gyeongsang, North Chungcheong, and Ulsan, foreign customer sales rose by more than 120% year-on-year, signaling wider regional expansion of K-beauty consumption.

Olive Young is expanding logistics infrastructure. The Gyeongsan Center has been upgraded to strengthen 24-hour delivery capabilities in the Daegu and Gyeongbuk regions, while a Jeju-specific fast delivery service is being developed within the year.

The company will hire about 600 employees in non-metropolitan areas this year, with each town store employing about 55 people on average.

More than 90% of recent full-time hires came from internal part-time staff, supporting a promotion-based employment model.

Olive Young is also expanding its Career Development Plan (CDP) system through its Talent Management System (TMS), allowing employees to map career paths and apply for internal job transfers through a job posting platform.

To strengthen expertise, the company also introduced the “Beauty Consultant” role in January, selecting employees through internal applications and providing specialised training in customer service and product knowledge.