Grocery chain Bach Hoa Xanh to profit in Q4
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Bach Hoa Xanh is set to become profitable in the last quarter this year after closing 400 ineffective outlets in the first seven months, Mobile World Chairman Nguyen Duc Tai has said.
The bulk closure is part of the company’s plan to renovate the grocery chain and remove seven low-performing product categories, he told shareholders at a recent meeting, adding that the plan is nearly complete.
“It is true that we closed hundreds of outlets. But what happened? Total revenue continued to rise.”
There were 1,735 Bach Hoa Xanh outlets by the end of last month, with a monthly average revenue of VND1.3 billion recorded by each.
The chain’s revenue has been rising monthly since March and hit VND2.35 trillion in July, accounting for 18.6 percent of Mobile World’s total.
In the 2017-2020 period, Bach Hoa Xanh pursued to offer customers a better shopping experience than traditional markets, and there were times when it opened a new outlet every day with hundreds of employees recruited each month.
But now Mobile World wants to transform the chain’s model from “modern market” to “mini supermarkets” as it seeks to make customers feel like they are shopping at big stores.
Questions & Answers
Q.What actions did Bach Hoa Xanh take to improve its financial performance?
What actions did Bach Hoa Xanh take to improve its financial performance?
Bach Hoa Xanh closed 400 underperforming outlets in the first seven months of the year. They also removed seven categories of low-performing products as part of a renovation plan for the grocery chain.
Q.What is the current average monthly revenue for each Bach Hoa Xanh outlet?
What is the current average monthly revenue for each Bach Hoa Xanh outlet?
Each Bach Hoa Xanh outlet recorded a monthly average revenue of VND1.3 billion. This figure is based on the 1,735 outlets operating by the end of last month.
Q.How has Bach Hoa Xanh's revenue trended recently?
How has Bach Hoa Xanh's revenue trended recently?
The chain's total revenue has been rising monthly since March. In July, it reached VND2.35 trillion, contributing 18.6 percent to Mobile World’s total revenue.
Q.What is the new operational model Bach Hoa Xanh is adopting?
What is the new operational model Bach Hoa Xanh is adopting?
Bach Hoa Xanh is transforming its model from 'modern market' to 'mini supermarkets'. This aims to make customers feel as though they are shopping at larger stores.
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