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|Masan will shut down 150-300 VinMart+ convenience stores|
Gone are the days when convenience stores popped up like mushrooms, the arrival of COVID-19 has changed everything. The social distancing during the pandemic has weakened physical establishments as well as companies running the business at them. Local food giant Masan is one of the highlight examples of the case.
According to documents submitted to the coming shareholders' meeting, Masan – which holds 83.74 per cent shares in Vincommerce the operator of VinMart+ convenience stores and VinMart supermarkets – will shut about 10 supermarkets and 150-300 inefficient stores.
Explaining the closure, Masan stated that this is a part of its expansion blueprint. Specifically, the group will accelerate investment in selected and efficient stores and release weak establishments to save operation costs. Additionally, Masan also announced the plan to launch 20-30 supermarkets and 300-500 convenience stores in the next time.
Moreover, Masan will also work with suppliers regarding terms of trade specified in contracts between the two sides, aiming to reach a common voice on putting the goods on th eshelves at market prices.
|Masan MeatLife sets a spike in profits despite struggling with pandemic|
After falling into the hands of Masan, the diversity of goods, especially food, has been improved at VinMart and VinMart+ that were once estimated inferior to the Saigon Co.opMart supermarket chain.
As soon as the merger deal between Masan and Vincommerce went through late last year, Masan declared every VinMart+ store a sales point for its MeatDeli meat business.
According to the document, Masan targets VND42 trillion ($1.83 billion) in revenue for Vincommerce, up 64 per cent on-year. Of this, VinMart and VinMart+ will occupy about a quarter of the total earnings.
The group also hopes to reduce losses for the establishments and even reach the breakeven point during 2020.
The first quarter of this year saw Masan report a net deficit of VND216 billion ($9.4 million). This is its first loss over the past six years.