The Hanoitimes - Following the agreement, Auchan would hand over its 18 super markets and e-commerce platform to Saigon Co.op.
Vietnam’s leading domestic retailer Saigon Co.op on June 27 announced the agreemeent to take over French retailer Auchan’s operation in Vietnam, local media reported.
Following the agreement, Auchan would hand over its 18 super markets and e-commerce platform to Saigon Co.op.
Overview of the signing ceremony. Source: Tuoi Tre News.
For the time being until Tet Holiday of 2020, Saigon Co.op is expected to manage the Auchan brand in Vietnam, which is later subject to renegotiation between both parties.
In addition to the taking over process, Saigon Co.op is committed to ensuring full rights for customers with Auchan’s membership, and allowing them to become a member of Saigon Co.op if being requested.
Both parties have left the door open for future cooperation after the agreement.
Nguyen Anh Duc, vice general director of Saigon Co.op, said from now on until the end of the year, the domestic retailer would relaunch these 18 supermarkets based on the operation model of Co.opmart, Co.optra, or Finelife.
Among those supermarkets, some will be closed permanently, Duc informed.
Auchan Vietnam previously suspended operation of 15 supermarkets, and only maintained three in Ho Chi Minh City.
Meanwhile, its online retail operation has been temporarily suspended since May 16.
In May, Auchan Retail CEO Edgar Bonte told newspaper Les Echos that the group had decided to sell its 18 stores in Vietnam. Those Vietnam outlets currently generate revenues of EUR45 million (US$50.4 million).
The exit from Vietnam followed Auchan’s deal on May 14 to sell almost all the activities of its loss-making Auchan Retail Italia arm to Conad, the Italian co-operative retail group.
Auchan was the last western retailer leaving Vietnam, according to Le Monde. In 2016, German Metro AG completed the sale of its Metro Cash & Carry to Thailand's TCC Group and Big C Vietnam was acquired by Central Group, also from Thailand, from French’s Casino Group.
Auchan made its first presence in Vietnam in 2015, and currently runs 18 supermarkets in Hanoi, Ho Chi Minh City and Tay Ninh, of which 13 are in Ho Chi Minh City, four in Hanoi and one in Tay Ninh.