Vietnam

Auchan leaves the Vietnamese market due to challenging conditions

The local competition has suffocated any possibility of expansion for the European retailer.

Posted on May 22 ,06:09

Auchan leaves the Vietnamese market due to challenging conditions

Auchan decided to exit the Vietnamese market and is ready to sell its stores due to challenging conditions. This move is part of the company's Renaissance action plan to put a greater focus on generating profits. The same action plan has lead to an agreement signed with Conad, the Italian co-operative retail group, who will buy most of its estates in Italy, according to IGD Asia.
In Vietnam, Auchan holds 18 stores generating a revenue of $50.4 million. Its presence is almost invisible compared with the local competition.
Retailers in Vietnam are investing heavily to grow their network. Domestic retailers like Saigon Co.op and VinMart, for example, are developing rapidly. Saigon Co.op targets to grow its stores from 650 to 1,000 stores by the end of this year. VinMart’s goal is to have 4,000 stores by 2020 from about 2,000 currently.

 NEWSLETTER - Stay informed with the latest news!

Comments





Similar articles

UK

UK food sales to reach £24 billion by 2024

The UK food and grocery industry is forecast to grow by £24.1bn, or 12.5%, by 2024, bringin...


Read more Read more
China

The Chinese grocery market will overtake the American one by 2023

A new forecast from international researcher IGD Asia predicts that Chia is to become the world's...


Read more Read more
International

E-commerce grocery sales to add $257 billion in FMCG market

Major grocery e-commerce markets will continue to expand rapidly, growing at almost four times th...


Read more Read more
Websolutions by Angular Software and SpiderClass