Econ
Convenience store chains entering a new race
With an average growth rate of 12% per year and potential revenue of US$180 billion by 2020, Vietnam`s retail market is showing its attraction to both domestic and foreign investors.
In particular, competition among convenience stores is heating up as investors taking steps to expand networks, investing in new technologies and services quality.
By the end of March, Saigon Trading Group (Satra) launched its 170th Satrafood convenience store in District 2, Ho Chi Minh city, taking the number of convenience stores in 2018 alone of the group to 13. Satra plans to have a total of 60 operational convenience stores this year.
In a similar move, Saigon Co.op currently has 210 Co.op Food stores, 76 Co.op Smile and is developing the Cheers convenience store model. In 2018, Saigon Co.op aims to open additional 170 Co.op Food stores, 150 Co.op Smile and 50 Cheers convenience stores.
However, VinGroup proved to have the fastest growth rate in convenience stores expansion with Vinmart+. In three years after entering the market, Vinmart+ has a total of 1,000 stores and still counting.
Bach Hoa Xanh chain of the Mobile World is also worth to mention despite being a late comer. As at the mid of April, a total of 361 Bach Hoa Xanh stores has been opened in Ho Chi Minh city, for which the number is expected to rise to 1,000 by the end of 2018, contributing to 10% of the retail market shares in few years to come.
A research conducted by Trade Research Insitute of the Ministry of Industry & Trade showed that in period 2016 - 2020, the average growth rate of Vietnam's retail market is at 11.9% with revenue of nearly US$180 billion by 2020. Vietnam is expected to have 1,200 - 1,500 supermarkets, 180 trade centers and 157 shopping malls by 2020.
As at present, Vietnam has over 2,000 convenience stores, which is expected to witness strong growth in the coming time.
Alongside domestic investors, foreign companies are stepping efforts to get a foothold in the market. FamilyMart currently has 130 stores, which is expected to add 50 more stores this year. 7-Eleven entered Vietnam's market in the mid of 2017 and planned for 300 stores in the next 3 years, and 1,000 stores in 10 years.
Other leading retail brands such as Bsmart or Circle K are also planning for expansion across the country. Not long ago, leading Korean retailer GS Retail set up a joint venture namely GS25 Vietnam with Son Kim Group to open its first convenience store in Ho Chi Minh city in January 19. GS25 Vietnam plans to open 2,500 stores in the next 10 years.
Experts said for convenience stores operator, stores expansion is essential to enhance its brand recognition and competitiveness, in turn increase revenue and profit. Stores are established in strategic location with high density will be vital to gain market shares.
In 2017, total revenue from Vietnam's retail market accounted for US$129 billion, up 11% compared to 2016 and higher than the average growth rate in Southeast Asian region, said a research by Savills Vietnam.
Convenience store chains entering a new race.
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In a similar move, Saigon Co.op currently has 210 Co.op Food stores, 76 Co.op Smile and is developing the Cheers convenience store model. In 2018, Saigon Co.op aims to open additional 170 Co.op Food stores, 150 Co.op Smile and 50 Cheers convenience stores.
However, VinGroup proved to have the fastest growth rate in convenience stores expansion with Vinmart+. In three years after entering the market, Vinmart+ has a total of 1,000 stores and still counting.
Bach Hoa Xanh chain of the Mobile World is also worth to mention despite being a late comer. As at the mid of April, a total of 361 Bach Hoa Xanh stores has been opened in Ho Chi Minh city, for which the number is expected to rise to 1,000 by the end of 2018, contributing to 10% of the retail market shares in few years to come.
A research conducted by Trade Research Insitute of the Ministry of Industry & Trade showed that in period 2016 - 2020, the average growth rate of Vietnam's retail market is at 11.9% with revenue of nearly US$180 billion by 2020. Vietnam is expected to have 1,200 - 1,500 supermarkets, 180 trade centers and 157 shopping malls by 2020.
As at present, Vietnam has over 2,000 convenience stores, which is expected to witness strong growth in the coming time.
Alongside domestic investors, foreign companies are stepping efforts to get a foothold in the market. FamilyMart currently has 130 stores, which is expected to add 50 more stores this year. 7-Eleven entered Vietnam's market in the mid of 2017 and planned for 300 stores in the next 3 years, and 1,000 stores in 10 years.
Other leading retail brands such as Bsmart or Circle K are also planning for expansion across the country. Not long ago, leading Korean retailer GS Retail set up a joint venture namely GS25 Vietnam with Son Kim Group to open its first convenience store in Ho Chi Minh city in January 19. GS25 Vietnam plans to open 2,500 stores in the next 10 years.
Experts said for convenience stores operator, stores expansion is essential to enhance its brand recognition and competitiveness, in turn increase revenue and profit. Stores are established in strategic location with high density will be vital to gain market shares.
In 2017, total revenue from Vietnam's retail market accounted for US$129 billion, up 11% compared to 2016 and higher than the average growth rate in Southeast Asian region, said a research by Savills Vietnam.
