Grocery chain Bach Hoa Xanh revenues drop on store closures
Grocery chain Bach Hoa Xanh suffered an 8 percent fall in sales year-on-year in the second quarter to VND6.76 trillion (US$289.47 million) following its closure of hundreds of outlets.
The subsidiary of electronics retailer Mobile World closed 251 unprofitable outlets in May and June as it restructured and also changed the layout of the remaining stores.
It has so far renovated nearly 1,500 outlets and it plans to close down more this quarter, keeping only 1,700-1,800 stores open.
Nguyen Duc Tai, its chairman, has said there will be no expansion this year to focus on improving efficiency and customer service.
The company is preparing for nationwide expansion in 2023 from its current predominant presence in the south.
Bach Hoa Xanh reported revenues of VND12.8 trillion for the first half, accounting for 18 percent of Mobile World’s revenue.
Mobile World’s revenues rose 13 percent to VND70.8 trillion, while profits were up 1 percent at VND2.68 trillion.