CJ Olive Young's number of company-owned stores fell in the fourth quarter of last year for the first time in five years since the first quarter of 2021. Over the same period, the online share exceeded 30 percent for the first time. Observers say Olive Young, which has grown on the back of expanding domestic stores, is shifting its focus to expanding online and moving overseas as it works to improve efficiency in offline stores.

CJ said on Tuesday that Olive Young's total number of stores, including company-owned stores and franchises, fell by 13 to 1,381 in the fourth quarter from 1,394 in the third quarter of last year. The number of company-owned stores declined by 12 to 1,166 in the fourth quarter from 1,178 in the third quarter. Unlike the fourth quarter of 2023, when total stores fell by 1 due to franchises, this time the number of company-owned stores itself decreased. It appears to mark a shift in the long-running trend of store expansion.

Olive Young has grown by expanding offline stores. The structure linked growth in store numbers and sales, with greater accessibility through offline stores leading to sales growth. CJ Olive Young has expanded in scale, posting annual sales of more than 2 trillion won in 2021, followed by 2.7774 trillion won in 2022, 3.8611 trillion won in 2023, 4.7899 trillion won in 2024 and 5.8335 trillion won in 2025.

This has driven rapid growth in Olive Young's share of the domestic market. According to CJ's business report on the Financial Supervisory Service's electronic disclosure system, Olive Young's market share by sales in South Korea's beauty market rose to 20.2 percent in 2025 from 12.2 percent in 2022. Taking into account store density in major commercial districts and brand influence, the domestic market is seen as having reached a certain level of maturity. The first decline in store numbers is also interpreted as aligning with such changes in the market environment.

At the same time, the online share has steadily expanded. Olive Young's annual online share rose to 30.7 percent in 2025 from 24.3 percent in 2021. On a quarterly basis, it first exceeded 30 percent at 31.4 percent in the first quarter of 2025, then recorded 30.0 percent in the third quarter and 31.6 percent in the fourth quarter. As the growth strategy based on expanding domestic stores reaches a mature stage, the importance of online channels is seen as increasing.

CJ Olive Young is seeking to expand its online share through its same-day delivery service, Today Dream, and app upgrades. Olive Better, which separated the wellness category, is also strengthening online capabilities. After opening its first store in Gwanghwamun in January, it introduced an app-in-app method that implements the Olive Better service within the existing Olive Young app.

Olive Young will step up overseas expansion this year, centered on the United States. CJ Olive Young plans to open its first U.S. store in Pasadena in May and expand store openings into major commercial districts in Los Angeles. It also built a local logistics hub in Bloomington, California, earlier this month to provide logistics support for brands that have entered the 'K-beauty zone' within Sephora stores. With its growth strategy centered on expanding domestic stores reaching a mature stage, attention is focused on whether Olive Young can continue to grow in scale online and in overseas markets.

A CJ Olive Young official said, "Olive Young wants to expand the customer experience centered on company-owned stores, so the decrease in company-owned stores is not an intended strategy." The official added, "Rather than moving in the direction of increasing stores, we are making changes to stores depending on circumstances, such as expanding foreign customer demand and expanding experiential services."