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VinMart, a leading retailer in Vietnam, has placed large posters displaying images of over 100 daily essential products on shelves to look like a supermarket in 20 locations. Shoppers can buy these products by scanning QR codes on their mobile phone and pay with the VinID app.
Vingroup has acquired all 87 Shop & Go chain of convenience stores for just US$1. There are 70 stores in Ho Chi Minh City and 17 in Hanoi.
Shop & Go opened its first store in 2006 and became one of the first operators of modern convenience stores in Vietnam. A representative for the retail chain said, “we have invested a great deal in the Shop & Go system, however the results are not as expected. The Vietnamese retail market still has potential space to grow, but competition is tight. Therefore, we decided to retreat. In the market, Vingroup has proven its superiority in the retail sector. We decided to donate Shop & Go so that Vingroup can continue its investment and development.”
Vingroup operates 108 VinMart supermarkets and about 1,900 VinMart+ convenience stores. It will upgrade the infrastructure, train the staff and refresh the products of Shop & Go stores in the month of April. Last year, the group acquired FiviMart, which had 23 stores that were rebranded as VinMart after the merger. We believe the retailer will do the same with Shop & Go.
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VinMart, a leading retailer in Vietnam, is testing “Scan & Go” feature with a mobile application in 13 stores.
Shoppers need to download the VinID app and be a member to use the new feature. Once the “Scan & Go” feature is selected, shoppers can scan the barcode in the store and see the product information and prices in their electronic cart. Payment can be made upon checkout using a barcode at specific counters. Finally, shoppers can choose to pick up their shopping at the store or receive their delivery after two hours on the app.
The service is targeted at convenience-loving youths and busy shoppers. With home delivery, shoppers do not have to do the heavy lifting. Those who choose to pick up their shopping later can spend more time in the mall or watch a movie without carrying their groceries around. With the barcode payment feature, shoppers can also expect much faster payment. Special promotions will be displayed immediately for those using the app.
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.
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After three years in operation, VinMart supermarkets and VinMart+ convenience stores form the largest retail chain in Vietnam. Building on this success, the retailer is looking to continue its development over the next two years.
In December 2017 alone, the retailer added 100 new outlets in 11 provinces. On average, three convenience stores were opened per day. At a recent supplier conference, Vincommerce's owner, Thai Thi Thanh Hai, said that there were 65 VinMart supermarkets and over 1,000 VinMart+ convenience stores across 26 provinces.
"In the next phase of development, our top priority is to build strategic partnerships with key suppliers while optimizing supply chain efficiencies," said Mr. Thai Thi.
The retailer's plan is to have 200 supermarkets and 4,000 convenience stores by 2020. It aims to provide quality products with its private label brands across the network. It retails VinEco fruit and vegetables which meets VietGAP standards, produced in its own farms. It also carries VinMart Cook which supplies fresh and ready to eat food, and VinMart Home which produces safe household appliances.
Food safety is a key concern in Vietnam. With its own farms and private label food products, VinMart can control the food quality delivered to its consumers.
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