Grocery chain Bach Hoa Xanh revenues drop on store closures
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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.
Questions & Answers
Q.What was the total revenue reported by Bach Hoa Xanh for the first half of the year?
What was the total revenue reported by Bach Hoa Xanh for the first half of the year?
Bach Hoa Xanh reported revenues of VND12.8 trillion for the first half. This figure represented 18 percent of its parent company Mobile World’s total revenue during that period.
Q.How many stores does Bach Hoa Xanh plan to keep open after its restructuring?
How many stores does Bach Hoa Xanh plan to keep open after its restructuring?
Bach Hoa Xanh plans to keep between 1,700 and 1,800 stores open. The company has already renovated nearly 1,500 outlets as part of its restructuring efforts.
Q.What is the company's strategy regarding expansion for the current year?
What is the company's strategy regarding expansion for the current year?
The chairman, Nguyen Duc Tai, stated there will be no expansion this year. The focus is instead on improving efficiency and customer service within the existing operations.
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