Notable among them are MWG's scaling up of Bách Hóa Xanh and EraBlue, Masan's WinCommerce system, FPT Retail's electronics and pharmacy chains, and Fahasa bookstores.
Bách Hóa Xanh, the food retail chain under Mobile World Investment Corporation (MWG), plans to open seven new stores in August, mainly in Ho Chi Minh City, Long An, Bình Dương, and Đồng Nai. While seven stores might seem insignificant for a chain with around 1,700 outlets, this marks a strategic shift towards expansion after finding a "winning formula."
Previously, Bách Hóa Xanh had to close hundreds of underperforming stores as part of its restructuring efforts starting in 2022. Now, the chain has become MWG's "golden goose," recording a profit of 7 billion VND in Q2. The average revenue per store has returned to a historic high of 2.1 billion VND and is expected to continue growing. This year, the chain aims to increase average store revenue and optimize costs, with plans to open 100 more stores and expand into Central and Northern Vietnam. Bách Hóa Xanh's leadership is confident in achieving billion-VND profits in the coming years.
MWG is also channeling resources into expanding EraBlue, a retail chain in Indonesia modeled after Vietnam's Điện Máy Xanh. After two years of development, EraBlue has become Indonesia's largest modern retail chain with over 65 stores. Each EraBlue store generates nearly twice the revenue of a Điện Máy Xanh store of the same size in Vietnam.
MWG aims to elevate EraBlue's position and revenue to match Điện Máy Xanh's in Indonesia. The goal is to expand the network to nearly 100 stores by the end of this year and 500 by 2027. EraBlue is a joint venture between MWG (45%) and Erajaya Group (55%), with plans to turn a profit at the company level before Q4 2024. There is also the possibility of listing on the Indonesian stock exchange after 2027.
Masan Group (MSN) is also intensifying its store openings in the coming years. According to CEO Nguyễn Thị Phương, WinCommerce aims to reach 10,000 stores by 2030. Currently, the system has 3,673 outlets as of Q2, with 40 new stores opened this year. The company plans to accelerate store openings in the second half of the year, targeting 100 new stores each quarter, equivalent to more than one store per day.
WinCommerce achieved 9% revenue growth in Q2, reaching 7.844 trillion VND. The chain's success is attributed to the recovery in consumer spending, with stores turning a profit for the first time since Masan took over.
In early August, FPT Retail (FRT) surprised the market by opening 10 electronics stores simultaneously in Ho Chi Minh City and southern provinces like Bình Dương, Đồng Nai, and Tiền Giang, officially entering the electronics and home appliances retail market.
The company's leadership stated that if the new stores meet their targets, FPT Shop will expand its network to 50 stores by the end of this year. Despite the challenge of entering a saturated market dominated by major players, FPT Shop remains confident in its ability to capitalize on opportunities, especially in the under-penetrated air conditioner and washing machine segments.
For its Long Châu pharmacy chain, FPT Retail plans to open 400 new stores this year, bringing the total to around 1,900 by 2024. In the first half of the year, the chain saw a 67% increase in revenue compared to the same period last year, reaching 11.521 trillion VND, accounting for 63% of the company's total revenue. FPT Retail currently operates 2,435 stores nationwide, with 1,706 Long Châu pharmacies and 642 FPT Shops following recent restructuring.
The company is also expanding its vaccine network with 36 new centers in Q2, bringing the total to 87 centers in 40 provinces, accelerating the development of a comprehensive healthcare ecosystem for customers.
Since the beginning of the year, Fahasa (FHS), a leading bookstore chain, has opened more than seven new stores, many in high-traffic shopping centers like Fahasa Trần Duy Hưng, Fahasa Sông Trà, Fahasa Phạm Văn Đồng, and others.
Fahasa's leadership noted that while many companies are shrinking and cutting costs during economic downturns, this is an opportunity for financially strong companies to expand rapidly. Fahasa sees this as a chance to capture more market share. Currently, Fahasa operates 120 bookstores nationwide, with two warehouses in Ho Chi Minh City and Hanoi, totaling over 10,000 square meters.
Despite challenges, the company plans to continue investing in new stores in 2024 and expects a 5% increase in revenue to 4 trillion VND. The company recorded 1.829 trillion VND in revenue in the first half of the year, achieving 46% of its annual target.
Source: vietnambiz
Compile by VietnamCredit
