Business

French retailer retreats from Vietnam

SGGP
Mr. Edgar Bonte, CEO of French supermarket group Auchan Retail, recently announced that the group has decided to sell its supermarkets in Vietnam due to loss.
Auchan’s business in Vietnam got revenue of EUR45 million (US$50.4 million) last year and is still suffering loss.
The French supermarket group entered Vietnam’s market in 2015. It is one of leading retail groups in the Fortune 500 list but after investing for five years in Vietnam, Auchan was only able to open 21 stores. Of which, three of its outlets were closed and the retailer also had to change brand identity many times to maintain its business. At the present, Auchan has 18 supermarkets in Vietnam, consisting of 13 supermarkets in Ho Chi Minh City, four in Hanoi and one in Tay Ninh Province.
The retailer has been negotiating with other retailers to seek for buyer to take over its business in Vietnam. All activities of Auchan in Vietnam still occur normally in the meantime.
Before withdrawing from Vietnam’s market, Auchan had had a gloomy year with a loss of more than EUR1 billion and accepted to sell its 1,600 loss-making stores in Italy to local company.
In an announcement in March this year, Auchan Holding revealed its net loss of EUR1.14 billion in 2018. Total revenue of the group fell 3.2 percent to EUR50.99 billion.

By Hai Ha – Translated by Thuy Doan

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