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This in-depth guide to Vietnam explores the key trends in grocery retail and the growth strategies of the leading retailers in the country.
Get up to speed on all of the latest retailer results, the insight into what is driving growth and IGD's five big trends to watch in Asia in 2019.
Saigon Co.op buys out Auchan’s business in Vietnam.
Saigon Co.op, the leading grocery retailer in Vietnam, targets to grow its stores from 650 to 1,000 by year end.
Diep Dung, the group's chairman, said there will be new openings for Co.op Mart supermarket, Co.op Xtra hypermarket, Co.op food stores, Co.op Smiles and Cheers convenience stores. It will also launch a new format targeting wealthy shoppers which includes advanced technology to meet their demands. Last year, the retailer added 160 stores to its network despite challenges in finding appropriate locations.
The retailer shared that it hit record sales with VND 1tn (US$ 43m) per week for eight consecutive weeks last Tet. This was attributed to being well prepared with advanced stocking before the holiday period.
Keep up-to-date with the latest retail developments from Asia.
Saigon Co.op, a leading retailer in Vietnam, is developing a shopping centre and more supermarkets in Can Tho.
Can Tho is one of the five largest cities in Vietnam, with a population of 1.4 million people. The new shopping centre will be built in Cai Rang district, with a total floor area of about 40,000 sq m. Similar to SC VivoCity in district 7 in Ho Chi Minh City, it is designed to include a supermarket, dining, entertainment and health services. The investment is estimated at US$43m for the mall construction.
Besides building a new mall, Saigon Co.op will open five more supermarkets in the city from 2019-2021. It currently has 1 Sense City, 3 Co.op Mart and 8 Co.op Food stores. The retailer is increasingly seeking investment outside Ho Chi Minh city where it is based to build its network.
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.
Cheers has opened its third store on Dinh Tien Hoang Street in downtown Ho Chi Minh City, Vietnam.
Operated by a joint venture between Vietnamese retailer Saigon Co.op and Singapore’s NTUC FairPrice, Cheers stores are open 24 hours, sspecialise in imported food and grocery. The stores also provide utilities payment services and offer dine-in areas with free wifi.
The first Cheers store opened on Hoa Hao Street, in District 10, last December. The partnership plans to have 50 stores trading in Vietnam by the end of 2018. The two retailers also partnered up on Co.OpXtra hypermarkets.
Besides the expansion in Vietnam, NTUC FairPrice has upgraded its ecommerce platform, supported by automated fulfillment system and collaboration with ride-hailing app Grab for delivery. It has also launched its technology driven 'Living Lab' in Singapore.
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