HCMC – Since the VinCommerce consumer retail unit of Vingroup merged with Masan Group’s retail subsidiary Masan Consumer Holdings, over 400 ineffective VinMart+ convenience stores have been shut down to reduce losses and approach the breakeven point.
Masan’s development plan for VinCommerce has produced positive results, with its earnings before interest, tax, depreciation and amortization improving from minus 5.1% in the first quarter to 8.5% in the second quarter when the coronavirus broke out in Vietnam. The firm is making efforts to breakeven this year.
Between January and September, 12 VinMart supermarkets and 421 VinMart+ convenience stores, which performed poorly, were shut. Of the total, over 80% of the closed Vinmart+ stores were located in HCMC and some Grade II cities.
Besides, Masan has opened one new VinMart supermarket and 57 VinMart+ stores, taking the total number of VinMart stores to 2,646 as of late September.
Masan’s plan to shut down ineffective stores and open new ones helped VinCommerce earn over VND7.8 trillion in the third quarter of the year. In the nine-month period, the revenue of the VinMart+ retail chain surged by 50% year-on-year despite 400 stores being shut down.
Hanoi City contributed 48% to the VinMart retail chain’s total revenue, while in HCMC, VinCommerce is striving to improve its business efficiency, according to Masan.
By Viet Dung