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Tag: AuchanSuper

  • French retail giant AuchanSuper about to enter Vietnam

    French retail giant AuchanSuper about to enter Vietnam

    AuchanSuper, a major retail brand of France, is planning to enter Vietnam with the opening of the first store in 2016, according to a recent report on Ho Chi Minh City’s retailing landscape for this year of the Vietnamese arm of U.S.-based realty consultant firm CBRE.

    CBRE Vietnam said in the report last week that Ho Chi Minh City will be home to 15 AuchanSuper convenience stores, reinforcing the presence of foreign retailing brands in the southern economic hub.

    As of 2015, only one foreign retailer, which is French-owned Big C, had been on the list of the top five players in Vietnam alongside such local competitors as Saigon Co.op, Mobile World, Nguyen Kim Trading Joint Stock Company, and Saigon Jewelry Company Limited.

    Following the trend of other Asia-Pacific countries, operators of convenience stores will possibly gain a much larger market share, according to the report.

    Established since 1960, Auchan, the largest retail brand of France, currently owns nearly 900 hypermarkets, 370 supermarkets and more than 860 shopping centers worldwide.

    In Vietnam, Auchan has been present since 2014 through the Simply Mart supermarket chain, which is expected to grow to about 20 stores in Vietnam until 2020.

    Big C, on the other hand, may be sold to other investors after Casino Group, the owner of the retail chain, issued a memorandum last month stating that it may seek a new owner for its supermarket chain in Vietnam, as the company plans to strengthen its financial flexibility by selling assets in the country, as well as Thailand and Colombia.

    Despite a sustainable growth rate, earnings from the Vietnamese arm are miniscule in comparison with other foreign businesses of Big C.

    In 2016 Casino Group is expected to enact what it calls a ‘deleveraging plan’ of more than two billion euros (US$2.2 billion), mainly through real estate transactions and the disposal of non-core assets, according to the memo.

    The French group currently owns 10 retail brands across the globe, with a concentration in Asia. The Big C brand is used for the supermarket chain in Vietnam and Thailand.

    Regarding the wholesale business in Vietnam, the sole foreign player, German-owned Metro Group, last week announced it had officially been transferred to Thailand’s TCC Holding Co.

    TCC acquired all of Metro Cash & Carry Vietnam’s operations, including 19 wholesale stores and related real estate portfolios for an enterprise value of 655 million euros ($712.14 million), according to a Metro press release.

    Metro said the deal resulted in a cash inflow of around 400 million euros ($434.9 million), adding that payment had already been made.

     

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  • AuchanSuper Vietnam plans 18 stores

    AuchanSuper Vietnam plans 18 stores

    Privately-owned French supermarket operator AuchanSuper has opened its first store in Vietnam, branded Simply Market.

    It plans 17 more before the end of 2016.

    The first store is trading in Ho Chi Minh City’s District 5, a middle class Vietnamese suburb not popular with expatriates, which gives a strong indication of the demographic the French company is targeting in Vietnam, its 15th international market.

    The first store will be followed by two more before this year ends, each with a footprint of 2000 to 3000 sqm.

    As the disposable income of Vietnam’s 90 million population increases, more and more foreign retailers are trying to establish a foothold in the country. The French-Thai joint venture Big C, Japan’s Aeon and South Korea’s Lotte Mart have the early running in the grocery market, while Circle K, FamilyMart and Berli Jucker’s B Smart are busily building networks of convenience stores before 7-Eleven makes its debut as early as next year.

    AuchanSuper is investing up to euro 40 million in its Vietnam foray.

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  • France’s AuchanSuper to open 15 stores in Ho Chi Minh City in 2016

    France’s AuchanSuper to open 15 stores in Ho Chi Minh City in 2016

    While it currently runs only one outlet in Ho Chi Minh City, French supermarket chain operator AuchanSuper has plans to increase the number to 17 in 2016, a top executive said.

    The maiden AuchanSuper-run Simply Mart in the southern Vietnamese metropolis is located in District 5, and two more stores are scheduled for opening by the end of this year, chief financial officer Philippe Delalande said at a meeting with the city’s deputy chairman Le Thanh Liem on Thursday.

    One of the two coming Simply Mart stores is expected to open at the Le Thanh Apartment in Binh Tan District in November, according to newswire The Saigon Times Online.

    In 2016 15 more such outlets, spanning from 2,000 to 3,000 square meters each, are expected to add to the list, according to the CFO.

    AuchanSuper is expected to spend a total of 35 million – 40 million euros (US$38.9 million – $44.5 million) on the expansion plan in Vietnam in 2015 and 2016, Delalande told the Ho Chi Minh City official.

    The French firm will need around 1,000 employees for its Ho Chi Minh City operations.

    AuchanSuper has decided to expand its presence thanks to the potential for growth of the Vietnamese retail market, according to Delalande.

    The Ho Chi Minh City deputy chairman said he believes AuchanSuper, as a major experienced European retailer, will achieve success in Vietnam.

    Ho Chi Minh City currently accounts for 30 percent of the total retail sales, which Liem said will create favor condition for AuchanSuper to boost business.

    The Simply Mart in District 5 was previously known as S.Mart, which was inaugurated by C.T Group in 2012.

    AuchanSuper currently operates supermarkets and hypermarkets in 15 countries, but will only focus on the supermarket segment in Vietnam, according to The Saigon Times Online.

    In Ho Chi Minh City, the French company will face completion from strong players such as Big C, Lotte Mart, Aeon Mall, Metro, or Giant.

    AuchanSuper is a subsidiary of Groupe Auchan SA, a French international retail group and multinational corporation headquartered in Croix, France.

    It is one of the world’s principal distribution groups with a presence in 15 countries and 269,000 employees.

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