KPOP 1004 will receive 10,000 shares of WPF Holdings’ common stock and the exclusive distribution rights of all K-Pop and K-Beauty products for WPF Holdings and its subsidiaries.
The financial terms of the transaction have not been disclosed.
In a statement, WPF Holdings said the transaction ‘reflects the more technology-focused direction of WPF Holdings and modifies and closes out the acquisition agreement prior announced between the parties’.
Following the acquisition, WPF Holdings will integrate all the acquired assets and operations into its new subsidiary company, K-Shop.
KPOP 1004 will serve as the only distributor of all K-Pop and K-Beauty merchandise for the new company.
The retailer is currently the US’ largest K-Pop retailer in terms of square footage.
WPF Holdings said the deal will allow it to increase its sales and attract K-Pop fans online using WPF Holdings’ marketing and technology.
Besides its digital website, K-Shop will install physical kiosks in every KPOP 1004 location to help consumers buy online-only or non-stocked items.
The kiosk programme was initially launched at the Ontario Mills Mall, Westfield Valencia Town Centre and San Francisco Premium Outlet in California, as well as the Las Vegas South Premium Outlets in Nevada.
KPOP 1004 plans to expand into other states by the end of this year.
The US’ K-Beauty market currently generates $10.3bn in revenue and is expected to reach revenues of $31.6bn by 2029.
WPF Holdings aims to provide e-commerce and digital consultancy services to help businesses ‘navigate the ever-evolving digital landscape’.
The company employs colleagues across web design, digital marketing and e-commerce strategy among other fields.
Through these, it aims to help brands increase their online presence and revenue.