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Tag: Bach Hoa Xanh

  • Grocery chain Bach Hoa Xanh to profit in Q4

    Grocery chain Bach Hoa Xanh to profit in Q4

    Bach Hoa Xanh is set to become profitable in the last quarter this year after closing 400 ineffective outlets in the first seven months, Mobile World Chairman Nguyen Duc Tai has said.

    The bulk closure is part of the company’s plan to renovate the grocery chain and remove seven low-performing product categories, he told shareholders at a recent meeting, adding that the plan is nearly complete.

    “It is true that we closed hundreds of outlets. But what happened? Total revenue continued to rise.”

    There were 1,735 Bach Hoa Xanh outlets by the end of last month, with a monthly average revenue of VND1.3 billion recorded by each.

    The chain’s revenue has been rising monthly since March and hit VND2.35 trillion in July, accounting for 18.6 percent of Mobile World’s total.

    In the 2017-2020 period, Bach Hoa Xanh pursued to offer customers a better shopping experience than traditional markets, and there were times when it opened a new outlet every day with hundreds of employees recruited each month.

    But now Mobile World wants to transform the chain’s model from “modern market” to “mini supermarkets” as it seeks to make customers feel like they are shopping at big stores.

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  • Grocery chain Bach Hoa Xanh revenues drop on store closures

    Grocery chain Bach Hoa Xanh revenues drop on store closures

    Grocery chain Bach Hoa Xanh suffered an 8 percent fall in sales year-on-year in the second quarter to VND6.76 trillion (US$289.47 million) following its closure of hundreds of outlets.

    The subsidiary of electronics retailer Mobile World closed 251 unprofitable outlets in May and June as it restructured and also changed the layout of the remaining stores.

    It has so far renovated nearly 1,500 outlets and it plans to close down more this quarter, keeping only 1,700-1,800 stores open.

    Nguyen Duc Tai, its chairman, has said there will be no expansion this year to focus on improving efficiency and customer service.

    The company is preparing for nationwide expansion in 2023 from its current predominant presence in the south.

    Bach Hoa Xanh reported revenues of VND12.8 trillion for the first half, accounting for 18 percent of Mobile World’s revenue.

    Mobile World’s revenues rose 13 percent to VND70.8 trillion, while profits were up 1 percent at VND2.68 trillion.

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  • Vietnam’s Mobile World sales rises

    Vietnam’s Mobile World sales rises

    Vietnam’s Mobile World saw a 43 per cent jump in revenue in the first five months of this year.

    The mobile device and consumer electronics retailer posted net sales of VND37 trillion (US$1.61 billion) and an after-tax profit of $55.8 million, 44 per cent up year-on-year.

    Of its divisions, electronic retail arm Dien May Xanh accounted for 56 per cent, mobile phone retail chain The Gioi Di Dong 41 per cent, and its fledgling grocery chain Bach Hoa Xanh 3 per cent.

    According to Mobile World’s CEO Tran Kinh Doanh, the company plans to expand Bach Hoa Xanh to 1000 stores in Ho Chi Minh City, and more in other provinces.

    The Gioi Di Dong chain has scaled down its network to 500 stores this year after closing six stores.

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  • Vietnam’s The Gioi Di Dong closed stores

    Vietnam’s The Gioi Di Dong closed stores

    Despite revenue growth, Vietnam retailer Mobile World has shuttered six The Gioi Di Dong stores.

    It closed the outlets last month following one earlier closure with a plan to maintain 1065 stores nationwide. The company says it has decided not to expand its store network to focus on revenue growth, but with the closing spree revenue for The Gioi Di Dong last month dropped 5 per cent from a year earlier to US$126.85 million.

    Now The Gioi Di Dong looks set to open only 500 locations by the end of this year instead of the previous goal of 1000 stores, according to chairman Nguyen Duc Tai.

    Mobile World is also struggling with its grocery business, Bach Hoa Xanh, which has added only 3 per cent to the company’s profit.

    In the first quarter of this year, revenue reached $1.31 billion, up 43 per cent year on year, to produce profit of $45.94 million, up 44 per cent.

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  • Vietnam’s Mobile World plans 300 grocery stores

    Vietnam’s Mobile World plans 300 grocery stores

    Vietnam’s Mobile World – the electronics retailer – says it plans to open 300 more grocery stores under the Bach Hoa Xanh banner this year.

    The convenience store chain targets time-poor Vietnamese housewives who prefer small stores to crowded supermarkets or hypermarkets.

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    With 50 stores in Ho Chi Minh City’s Binh Tan district alone, Bach Hoa Xanh stores each achieve more than VND1 billion (US$44,300) in monthly sales, prompting the rapid expansion strategy.

    Nguyen Duc Tai, chairman of Mobile World, expects Bach Hoa Xanh stores to replace wet markets and become the leading player of this grocery sector, a market worth an estimated $60 billion annually.

    Mobile World Is Vietnam’s third-largest retailer, behind only supermarket Coop Mart and hypermarket chain Big C.

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