Customers shop at a WinMart store.

HCM CITY — According to the financial report for Q3/2023, 70 per cent of WinCommerce's minimart group had an after-tax profit margin of 2.2 per cent in what was their second consecutive quarter of profitability. 

This significant milestone instils confidence in the leadership regarding the path to achieving breakeven for the entire network by 2024, thanks to growth-oriented strategies.

Despite the slow recovery in consumer sentiment and slower new store openings, WinCommerce (WCM) achieved healthy EBITDA (earnings before interest, taxes, depreciation, and amortization) growth in Q3, reaching an EBITDA margin of 2.9 per cent, up from 2.2 per cent in Q2 and 1 per cent in Q1.

As a result, the EBIT margin was flat in Q3 and on path to turning positive for the first time since COVID-19. 

Catering to a variety of customer requirements 

A “Hi! Beauty” zone featuring a wide range of beauty and personal care products at WinMart Hạ Long.

In 2023 consumer spending is forecast to become more cautious. However, most customers residing and working in upscale urban areas will not hesitate to spend, but will be more discerning in brand selection and prioritise the shopping experience.

After over nine years of active operation in the retail industry with two models, supermarket and convenience store, the WinCommerce retail chain has come up with a premium supermarket model in prime locations in major urban hubs such as Hà Nội and HCM City.

The model targets customers with high income and social status, busy lifestyle and multiple needs in a one-stop shopping destination.

Alongside this, aiming to serve a diverse customer base, the company has introduced the Winmart+ Rural model, a key component in its strategy to conquer the rural market with a portfolio of competitively priced domestic products and mid-range imported fruits and a strong focus on promotions.

As a result, the performance of WCM's store models is clearly reflected in the financial report for Q3/2023 from Masan Group.

Its net revenues increased by 2.1 per cent in the first nine months of 2023 and by 3.3 per cent in Q3, both year-on-year, thanks to the opening of new stores.

As of September 2023 WCM had 3,586 stores around the country, including mini supermarkets and supermarkets.

According to reports, like-for-like (LFL) revenue growth for WinMart+ improved to -5.9 per cent in Q3/2023 from -9.6 per cent in the first half of 2023. It also improved for WinMart to -3.8 per cent from -7.7 per cent.

‘Socialisation of safe vegetables’ with WinEco

WinMart supermarket with a variety of fresh goods trusted by customers.

In the modern retail segment, WinCommerce is the largest player in Việt Nam with more than 3,600 supermarkets and WinMart/WinMart+ stores in 62 provinces and cities out of 63.

Maintaining a supply chain with over 90 per cent Vietnamese products, it plays a crucial role as a bridge, assisting local businesses and manufacturers in delivering high-quality products to more than 32 million customers every month.

In pursuit of its mission of "socialisation of safe vegetables", WCM has introduced WinEco safe vegetable products at reasonable prices across its entire system.

WinEco's fruits and vegetables are grown using advanced technologies from partners such as Netafim (Israel), Kubota (Japan) and Teshuva Agricultural Projects - TAP (Israel), which meet VietGAP, GlobalGAP, and Organic standards and automated production lines.

Quality is ensured under the guidance of experienced agricultural experts and engineers.

The safe vegetable products, from farm to table, grown using advanced technology by WinEco, are a strategic move by WCM to win consumers’ trust.

Competitive pricing strategy to benefit consumers, local businesses

Amidst economic challenges that have impacted consumers’ incomes, WinCommerce has unveiled a number of strategies aimed at keeping prices stable, stimulating demand and alleviating the burden of high prices for customers.

Through programmes and forums linked to the consumption of regional agricultural products, WinCommerce has proactively engaged with suppliers.

It has been collaborating with over 200 agricultural product suppliers, and has long-term buying contracts with suppliers, co-operatives and individual farmers to ensure supply. This initiative not only helps WCM secure cost-effective supply for the market but also helps provide local businesses with reliable outlets.

To reduce costs and offer competitive prices to consumers, WinCommerce established an in-house logistics chain named Supra in 2022 with 10 cold and dry warehouses across all three regions.

In its first year of operation, Supra helped achieve a 13 per cent reduction in logistics costs for goods delivered through the company's warehouse system.

Moreover, in the effort to create values for consumers, the company has also implemented the WIN Membership programme, enabling customers to buy products at more discounted prices.

In the 10 months since the programme began, membership has reached 7.2 million. To enhance the benefits of the programme, the company plans to collaborate with Phúc Long and Lazada, integrating their products and services into the platform.

With customer-centric growth strategies, WinCommerce has positioned the role in a golden era for the Vietnamese consumer market, contributing to achieving the economic growth goals set by the Government in 2023 and the future.

WinMart Hạ Long attracts a large number of customers on its opening day. — PhotoS courtesy of Masan Group