Last Hanoi Parkson to close its doors

The last Hanoi Parkson department store has been closed after eight years of trading.

In an announcement to customers released on November 19, the company said the center “will be moved” on December 15.

The 11,000 sqm department store located in Viet Tower in the city’s CBD was once expected to become the busiest shopping avenue in Hanoi. However, during eight years, the customer flow has been little.

Another Hanoi Parkson in the Keangnam area was closed due to a dispute between the retailer and the building owner. All retailers had to move out of the building overnight. Former Parkson CEO Toh Peng Koon once said Vietnam was the toughest market for the company and poor sales was the main reason for that closure.

In Ho Chi Minh City, Parkson Paragon was closed in May of this year, just five years into a 19-year lease.

So within two years, Parkson Vietnam has closed three stores and now has none left in the capital.

The Malaysian department store operator first came to Vietnam in 2005, opening in Saigon Tourist Plaza in Ho Chi Minh City.

Positioning in middle market, Parkson expected to dominate the retail market in Vietnam. In fact, it brought many international brands to Vietnam such Porsche Design, Sub Jeans, and was considered a shopping icon in the city. However, it quickly faced difficulties when consumer trends changed and other retail giants from Japan, Korea and Vietnam joined the market.

The most recent arrival is luxury Japanese department store brand Takashimaya.

Parkson Vietnam now has seven stores in Vietnam – five in HCMC, one in Hai Phong, and one in Danang.