Merchants Group acquires OK Mart, avoids red ocean of convenience stores, targets last mile of community consumption
Merchants Group acquired OK Mart for NT$125 million, avoiding the fierce competition among convenience stores. This strategic move aims to leverage OK Mart's presence in community outskirts to complement Simple Mart's neighborhood focus, thereby capturing the entire community consumption market.
📋 Article Processing Timeline
- 📰 Published: May 4, 2026 at 11:47
- 🔍 Collected: May 4, 2026 at 12:01 (14 min after Published)
- 🤖 AI Analyzed: May 4, 2026 at 12:05 (3 min after Collected)
（Central News Agency reporters Chiang Ming-yen, Ho Hsiu-ling, Taipei, 4th）In 2023, the Federal Group acquired the third-largest convenience store chain, Hi-Life, prompting whispers in the retail industry: would the next convenience store to be consolidated be the fourth-ranked OK Mart? The answer came in January this year when Merchants Group, with its Simple Mart supermarket as the core, announced the acquisition of OK Mart, which has approximately 380 stores nationwide and an annual revenue of NT$5 billion, for NT$125 million.
Apart from the price, which surprised the market, people were curious about Merchants Group's strategy behind the acquisition.
"Many people thought Simple Mart bought OK Mart to increase store count, improve logistics, and supply chain efficiency, but these are not the main points," said Merchants Group General Manager Chiu Kuang-lung, addressing the acquisition's purpose directly. In his view, Simple Mart is inside communities, while OK Mart is on the outskirts of communities. The value of OK Mart lies in a "market position that is right in front of Simple Mart but unattainable."
Chiu Kuang-lung's tone was firm, his eyes revealing a confident readiness. "For me, OK Mart plays the role of 'breaking out of the circle.'"
On the day the CNA team interviewed Chiu Kuang-lung, Merchants Group's office was about to undergo a month-long renovation. The environment, with stacked boxes, looked slightly chaotic, and employees were gradually starting to work from home. This spatial adjustment not only symbolizes organizational expansion; after welcoming over 100 new OK Mart team members, Merchants Group's retail team will exceed 300 people. It is foreseeable that the two retail formats, convenience stores and supermarkets, are about to spark integration and complementarity.
Breaking out of the consumption space: extending from "home doorstep" to "on the way home"
In his view, the value of OK Mart is not in its 380 locations. "Their (OK Mart) stores are quite different from others," Chiu Kuang-lung pointed out, looking out the window at the Minquan East Road business district, where Merchants Group's headquarters is located, filled with commercial buildings. "For example, you won't find any OK Mart in this area." Chiu Kuang-lung analyzed that to avoid direct competition with the three major convenience store chains, nearly 150 of OK Mart's 380 locations are in closed commercial areas, with most others being street-side stores, deliberately avoiding densely populated business districts.
In the traditional convenience store system, such an expansion strategy is often seen as a disadvantage. However, Chiu Kuang-lung thought in reverse, believing that OK Mart's locations are precisely in the "peripheral living circles" that Simple Mart cannot reach yet are highly relevant to communities. These locations allow Merchants Group to extend its service radius, stepping beyond the 250-meter core community commercial area to capture consumption opportunities both inside and outside the community, thus "breaking out of the consumption space."
Chiu Kuang-lung's positioning is clear: Simple Mart's acquisition of OK Mart will be a complementary market structure.
He explained that in the past, Simple Mart's core positioning was a "community chain grocery store," deeply rooted in residential alleys, targeting daily consumption needs "closest to home." The consumption scenario was often "coming out from home to shop." OK Mart, on the other hand, caters to young people, children, and office workers who "buy things on their way home." It can be said that "Simple Mart is inside the community, and OK Mart is on the outskirts of the community." The two are almost 100% non-overlapping, forming a complementary relationship in different consumption patterns, extending their reach from the "home doorstep" to "on the way home." The combination of the two channels will allow them to control the entire "community consumption economy."
Breaking brand boundaries: OK Mart to focus on Japanese snacks and novelty items to attract customers
Despite acquiring a convenience store brand, Chiu Kuang-lung repeatedly emphasized that OK Mart will not follow the convenience store track. In his view, traditional convenience store competition has long entered a red ocean. In the future, he only plans to maintain 24-hour operations for OK Mart locations with high nighttime demand, while stores near residential areas will avoid late-night operations to minimize disturbance. Even in product strategy, he adopts a highly flexible approach. "Not every store has to sell fresh food, but in a closed commercial area without competition, I can also sell onigiri."
"OK Mart's future positioning will be between Simple Mart and traditional convenience stores, forming an operating model different from existing channels," Chiu Kuang-lung succinctly explained his long-conceived blueprint.
Since OK Mart is currently operating at a loss, to turn it profitable, Chiu Kuang-lung said that the basic store model of OK Mart will not be significantly adjusted, but shelves and products will be rethought for configuration. Simple Mart emphasizes "family convenience," which is different from OK Mart, which focuses on satisfying individual immediate needs. In the future, based on this, it will gradually extend to family scenarios, so the focus will first be on products.
He said that compared to Simple Mart, which "starts struggling" to sell products above NT$50, the situation is completely different at OK Mart. Consumers have a higher tolerance for convenience store prices, willing to buy products at NT$90 or NT$100, making OK Mart a platform that can carry "mid-to-high priced goods." OK Mart has been relatively lacking in investment in "impulse purchase items" in the past. In the future, it will increase the proportion of imported goods, including Japanese snacks, novelty items, and even more trending items, to strengthen product differentiation.
"Things we didn't dare to touch before, we can now take action on," he said. This is not just an extension of the product structure but a breakthrough in brand boundaries, no longer confined to selling "cheap" items but gradually extending upwards in consumption levels.
The second step is the adjustment of equipment and space. Chiu Kuang-lung pointed out that they are currently comprehensively reviewing OK Mart store equipment. For example, convenience stores usually have walk-in refrigeration equipment for easy replenishment, with refrigerator sizes about 2.5 times that of a single refrigerator in Simple Mart, resulting in larger backroom space. In the future, this space will be released to the front area for consumers and products, improving store traffic flow and space efficiency.
Starting at 250 meters, redefining the boundaries of community retail, store expansion to begin in the second half of the year
After improving space efficiency through equipment and space adjustments in existing stores, Simple Mart's next focus will be on the precise layout of its store expansion strategy.
Supporting Simple Mart's rapid expansion is a highly data-driven store expansion model, shared Chiu Kuang-lung. "With a radius of 250 meters and about 2,000 households as the basic unit, as long as a 10% penetration rate is achieved, it can break even; when the penetration rate increases to 20%, we consider expanding to other locations." This model has been successfully validated in the north, especially in Taoyuan. However, adjustments are needed in central and southern Taiwan, mainly due to scattered populations and task-oriented shopping, requiring an expanded service radius to 500 meters and strengthened product appeal.
The second half of this year will be the starting point for store expansion after Merchants Group's acquisition of OK Mart. Chiu Kuang-lung revealed that the first OK Mart store in Taipei will be launched in May and June.
Apart from the price, which surprised the market, people were curious about Merchants Group's strategy behind the acquisition.
"Many people thought Simple Mart bought OK Mart to increase store count, improve logistics, and supply chain efficiency, but these are not the main points," said Merchants Group General Manager Chiu Kuang-lung, addressing the acquisition's purpose directly. In his view, Simple Mart is inside communities, while OK Mart is on the outskirts of communities. The value of OK Mart lies in a "market position that is right in front of Simple Mart but unattainable."
Chiu Kuang-lung's tone was firm, his eyes revealing a confident readiness. "For me, OK Mart plays the role of 'breaking out of the circle.'"
On the day the CNA team interviewed Chiu Kuang-lung, Merchants Group's office was about to undergo a month-long renovation. The environment, with stacked boxes, looked slightly chaotic, and employees were gradually starting to work from home. This spatial adjustment not only symbolizes organizational expansion; after welcoming over 100 new OK Mart team members, Merchants Group's retail team will exceed 300 people. It is foreseeable that the two retail formats, convenience stores and supermarkets, are about to spark integration and complementarity.
Breaking out of the consumption space: extending from "home doorstep" to "on the way home"
In his view, the value of OK Mart is not in its 380 locations. "Their (OK Mart) stores are quite different from others," Chiu Kuang-lung pointed out, looking out the window at the Minquan East Road business district, where Merchants Group's headquarters is located, filled with commercial buildings. "For example, you won't find any OK Mart in this area." Chiu Kuang-lung analyzed that to avoid direct competition with the three major convenience store chains, nearly 150 of OK Mart's 380 locations are in closed commercial areas, with most others being street-side stores, deliberately avoiding densely populated business districts.
In the traditional convenience store system, such an expansion strategy is often seen as a disadvantage. However, Chiu Kuang-lung thought in reverse, believing that OK Mart's locations are precisely in the "peripheral living circles" that Simple Mart cannot reach yet are highly relevant to communities. These locations allow Merchants Group to extend its service radius, stepping beyond the 250-meter core community commercial area to capture consumption opportunities both inside and outside the community, thus "breaking out of the consumption space."
Chiu Kuang-lung's positioning is clear: Simple Mart's acquisition of OK Mart will be a complementary market structure.
He explained that in the past, Simple Mart's core positioning was a "community chain grocery store," deeply rooted in residential alleys, targeting daily consumption needs "closest to home." The consumption scenario was often "coming out from home to shop." OK Mart, on the other hand, caters to young people, children, and office workers who "buy things on their way home." It can be said that "Simple Mart is inside the community, and OK Mart is on the outskirts of the community." The two are almost 100% non-overlapping, forming a complementary relationship in different consumption patterns, extending their reach from the "home doorstep" to "on the way home." The combination of the two channels will allow them to control the entire "community consumption economy."
Breaking brand boundaries: OK Mart to focus on Japanese snacks and novelty items to attract customers
Despite acquiring a convenience store brand, Chiu Kuang-lung repeatedly emphasized that OK Mart will not follow the convenience store track. In his view, traditional convenience store competition has long entered a red ocean. In the future, he only plans to maintain 24-hour operations for OK Mart locations with high nighttime demand, while stores near residential areas will avoid late-night operations to minimize disturbance. Even in product strategy, he adopts a highly flexible approach. "Not every store has to sell fresh food, but in a closed commercial area without competition, I can also sell onigiri."
"OK Mart's future positioning will be between Simple Mart and traditional convenience stores, forming an operating model different from existing channels," Chiu Kuang-lung succinctly explained his long-conceived blueprint.
Since OK Mart is currently operating at a loss, to turn it profitable, Chiu Kuang-lung said that the basic store model of OK Mart will not be significantly adjusted, but shelves and products will be rethought for configuration. Simple Mart emphasizes "family convenience," which is different from OK Mart, which focuses on satisfying individual immediate needs. In the future, based on this, it will gradually extend to family scenarios, so the focus will first be on products.
He said that compared to Simple Mart, which "starts struggling" to sell products above NT$50, the situation is completely different at OK Mart. Consumers have a higher tolerance for convenience store prices, willing to buy products at NT$90 or NT$100, making OK Mart a platform that can carry "mid-to-high priced goods." OK Mart has been relatively lacking in investment in "impulse purchase items" in the past. In the future, it will increase the proportion of imported goods, including Japanese snacks, novelty items, and even more trending items, to strengthen product differentiation.
"Things we didn't dare to touch before, we can now take action on," he said. This is not just an extension of the product structure but a breakthrough in brand boundaries, no longer confined to selling "cheap" items but gradually extending upwards in consumption levels.
The second step is the adjustment of equipment and space. Chiu Kuang-lung pointed out that they are currently comprehensively reviewing OK Mart store equipment. For example, convenience stores usually have walk-in refrigeration equipment for easy replenishment, with refrigerator sizes about 2.5 times that of a single refrigerator in Simple Mart, resulting in larger backroom space. In the future, this space will be released to the front area for consumers and products, improving store traffic flow and space efficiency.
Starting at 250 meters, redefining the boundaries of community retail, store expansion to begin in the second half of the year
After improving space efficiency through equipment and space adjustments in existing stores, Simple Mart's next focus will be on the precise layout of its store expansion strategy.
Supporting Simple Mart's rapid expansion is a highly data-driven store expansion model, shared Chiu Kuang-lung. "With a radius of 250 meters and about 2,000 households as the basic unit, as long as a 10% penetration rate is achieved, it can break even; when the penetration rate increases to 20%, we consider expanding to other locations." This model has been successfully validated in the north, especially in Taoyuan. However, adjustments are needed in central and southern Taiwan, mainly due to scattered populations and task-oriented shopping, requiring an expanded service radius to 500 meters and strengthened product appeal.
The second half of this year will be the starting point for store expansion after Merchants Group's acquisition of OK Mart. Chiu Kuang-lung revealed that the first OK Mart store in Taipei will be launched in May and June.