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We look at how Auchan is expanding its channel presence in Vietnam.
AEON has sold its 30% stake in small grocery chain Fivimart to Vinmart in Vietnam.
After four years of being a part owner and mounting losses, AEON has sold its share in Fivimart (23 stores). It has been reported that the decision to exit was due to poor performance and strategic differences between stakeholders.
All Fivimart stores will be rebranded to Vinmart supermarkets. In addition to fresh and general groceries, these stores will sell the Group’s private label brands, VinEco, VinMart Cook, and Vinmart Home.
AEON is still planning to expand its footprint in Vietnam, aiming to reach 500 stores by 2025. The retailer operates around 120 Ministop convenience outlets in the country. For the foreseeable future, it will maintain its 49% stake in Citimart, which it invested at the same time as Fivimart and previously announced ambitious expansion plans. AEON also operates four shopping malls in Hanoi, Binh Duong and Ho Chi Minh City, and two more are under construction in Hanoi and Haiphong.
Join our webinar on 2 October and discover which markets hold the most potential for online grocery retailing.
Auchan announces 100% acquisition of Giant supermarket at Crescent Mall in February 2018 in its half-yearly annual report.
Auchan has acquired Giant which was previously owned by Dairy Farm International (DFI). The store is located in an affluent residential area in district 7. The store is 3,500 sq m and has been opened since 2011. It was the only Giant hypermarket owned by DFI in Vietnam.
Auchan started in Vietnam with supermarkets in 2015. The retailer opened three My Auchan convenience stores last year. Besides the acquisition of Giant, it has also launched an online service this year. We believe that the retailer is still experimenting with different formats in this market which presents many growth opportunities.
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With an investment of US$500M, Central Group Vietnam aims to triple its Vietnamese business in the next five years.
The retailer has tested the market with Hello Beauty cosmetics shop, Home Mart general merchandise shop, and LookKool gift shop which has expanded to 26 locations. These new shops will open within its Big C malls to draw traffic to its hypermarket first, and will expand to other malls in the future.
Philippe Broianigo, Central Group Vietnam CEO, said, "We are very strong in Vietnam in food business which is the primary need of consumers, but we are also preparing for the future, for the needs consumers are going to have [beyond] food."
Central Group Vietnam is a multi-format retailer including hypermarkets and supermarkets, convenience stores and shopping malls. It has a joint-venture with Nguyen Kim, an electronics retailer. It is also involved in hospitality management, sporting goods, fashion stores and other international brands in Vietnam.
Vietnam's leading retailer, Saigon Co.op, announces plans to add more stores and develop a new premium format.
The retailer has achieved revenues of VND30tn (US$1.31bn) last year, including 30% growth in exports through its joint-venture with NTUC FairPrice in Singapore. It expects to grow strongly again with 10% increase in sales this year. It is planning to increase its network with 19 Co.op Mart, two Co.op Xtra, 170 Co.op Food, 150 Co.op Smile and 50 Cheers stores. It will also open a new format called Co.op Mart Finelife which targets high-income shoppers and to trial omni-channel retailing.
Foreign retailers are entering Vietnam due to the retail opportunities represented by its young population, rapidly rising incomes and growing consumption needs. Major retailers are investing in new store openings and creating appealing concepts to attract shoppers. Saigon Co.op is establishing its leadership position by growing its presence rapidly. We believe its local knowledge, deep relationships with suppliers and innovative capabilities will support its progress in the long term.
This in-depth guide to Vietnam explores the key trends in grocery retail and the growth strategies of the leading retailers in the country.
Five year growth forecasts for the grocery market, the leading retailers and modern trade grocery channels in Vietnam.