Thursday, April 25 2019

VietNamNews

Convenience stores have strong development in the future

Update: April, 01/2019 - 07:00
Convenience stores are expected to dominate the local retail market. — Photo plo.vn
Viet Nam News

HÀ NỘI — Convenience stores with many advantages are expected to dominate the local retail market, according to experts.

Many famous retail brands have entered Việt Nam market like Circle K of the US opening its stores in Việt Nam from August 2008 or Shop & Go of Singapore opening its stores from 2005.

At present, in the two big cities of Hà Nội and HCM City, Circle K has more than 300 stores while Shop & Go has more than 160 stores, reported bnews.vn.

Convenience stores are well received by consumers, so not only foreign businesses expand their markets, but also many domestic enterprises are constantly developing their convenience store chains.

In December 2018 alone, Vingroup’s retail arm, VinCommerce, opened 238 VinMart stores nationwide, bringing the total number of its convenience stores up to 1,700 in Việt Nam.

According to CBRE Việt Nam, a real estate management and consultancy company, Việt Nam’s retail market have seen a strong competition between foreign and local investors in developing their convenience store systems. They will expand their market shares by opening more convenience stores.

VinMart has planned to open other 3,000 stores in the future on the domestic market. Meanwhile, GS25, South Korean convenience store chain, has entered the Vietnamese market and has planned to open more than 2,500 stores. This is a sign of strong development of this market this year and beyond.

Hà Nội targets to have 1,000 more convenience stores by 2020 under a plan on developing trade and service sectors in the city until 2025 issued by the People’s Committee of Hà Nội in May 2018, according to deputy director of Hà Nội Department of Industry and Trade Trần Thị Phương Lan.

Lan said the convenience stores are located on a small place but they bring all kinds of goods to consumers that need everyday from food and drinks to needles and threads, and from brush, toothpaste to stationery and phone memory cards.

Even, the customers can pay electricity, tapped-water and telephone bills and withdraw money at the convenience stores. Besides that, most convenience stores also offer fast food and fresh food.

Đinh Thị Mỹ Loan, chairwoman of Việt Nam Retailers Association, said it is easier to get operation permission for a store with an area of 500sq.m at most than permission on opening a supermarket or hypermarket. In addition, the opening of store will contribute to promoting store brand.

Another advantage of opening convenience stores or mini supermarkets is to change the shopping habits of consumers, not to mention advantages in ensuring food hygiene and safety standards. — VNS

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