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VinCommerce speeds up restructure, names new deputy general director

Update: December, 04/2020 - 11:30

 

A VinMart employee arranges processed food products in a VinMart supermarket. VinCommerce is expected to start making profits in 2021. — Photo courtesy of Masan

HCM CITY — Masan Group has appointed Nguyễn Thị Phương as permanent deputy general director of VinCommerce (VCM), which it acquired last year.

She is in charge of developing VinMart into the No 1 supermarket chain in Việt Nam.

The enhancement of the senior management team is one of Masan's restructuring efforts to improve the operational efficiency of the VinMart/VinMart + retail systems.

In the one year since the merger with the Masan Group, VinMart and VinMart+ have achieved outstanding business results.

VinCommerce achieved revenues of VNĐ23.678 trillion (US$1.02 billion) in the first nine months of this year, accounting for 42.5 per cent of Masan’s total revenues of more than VNĐ55.6 trillion ($2.29 billion).

The VinMart+ convenience store chain recorded year-on-year increases of 38.4 per cent in revenues in the third quarter and 56.5 per cent in the first nine months.

In the first nine months Masan closed a number of supermarket outlets and convenience stores that did not meet profit targets.

VinMart+ stores and VinMart supermarkets that were closed had revenues per square metre of nearly 50 per cent lower than the level required to reach breakeven.

One VinMart supermarket and 57 VinMart + stores were opened in the first three quarters.

VinMart+ stores featuring new display models have been launched in HCM City and Hà Nội to offer more fresh products and improve the customer experience, thereby helping it understand consumer behaviour and come up with more eye-catching display models at its upcoming stores.

VinMart and VinMart+ are heading towards breakeven in the fourth quarter of 2020, paving the way for strong expansion in the time to come and likely profits starting in 2021.

VinCommerce targets having over 300 VinMart supermarkets and nearly 10,000 VinMart+ convenience stores by 2025 across 63 provinces and cities nationwide.

The goods supply chain for VinMart & VinMart+ will continue to be properly invested based on international standards, have close co-operation with major partners and reputed local suppliers to change the product portfolio to meet consumers’ requirements in each region, and ensure abundant supply of goods as well as the most fresh and delicious foods to satisfy demand in all segments from affordable to high-end.

More than 70 per cent of products sold at VinMart are locally made, which is in line with the desire to help foster domestic production.

Last month VCM announced plans to identify the Top 100 strategic partners who would join hands to develop Việt Nam's modern retail industry in a sustainable manner.

These partners shared its goals like providing superior quality products and those with clear origins.

The co-operation between the leading modern retail system in Việt Nam and its supply partners has leveraged the synergies between the domestic retail sector and producers to increase the market share of Vietnamese products in the domestic market and expand their presence in regional markets.

After focusing on improving the core issues of the VinMart + store model, VCM is continuing to improve its Vinmart supermarket model.

Investing in human resources is one of the strategies to provide a fillip to the two chains. VCM believes having a talented team with the spirit of serving consumers is the key factor in achieving transformation and bringing breakthrough values to consumers and shareholders.

Phương has more than 17 years of experience in the retail sector and held important positions at multinational corporations such as Central Retail Vietnam and Metro Cash & Carry. — VNS

 

 

 

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