Vietnam’s The Gioi Di Dong closed stores
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Despite revenue growth, Vietnam retailer Mobile World has shuttered six The Gioi Di Dong stores.
It closed the outlets last month following one earlier closure with a plan to maintain 1065 stores nationwide. The company says it has decided not to expand its store network to focus on revenue growth, but with the closing spree revenue for The Gioi Di Dong last month dropped 5 per cent from a year earlier to US$126.85 million.
Now The Gioi Di Dong looks set to open only 500 locations by the end of this year instead of the previous goal of 1000 stores, according to chairman Nguyen Duc Tai.
Mobile World is also struggling with its grocery business, Bach Hoa Xanh, which has added only 3 per cent to the company’s profit.
In the first quarter of this year, revenue reached $1.31 billion, up 43 per cent year on year, to produce profit of $45.94 million, up 44 per cent.
Questions & Answers
Q.How many The Gioi Di Dong stores did Mobile World close last month?
How many The Gioi Di Dong stores did Mobile World close last month?
Mobile World closed six The Gioi Di Dong stores last month, following one earlier closure. This brings the total recent closures to seven, with a plan to maintain 1065 stores across the country.
Q.What was the revenue performance for The Gioi Di Dong last month after the store closures?
What was the revenue performance for The Gioi Di Dong last month after the store closures?
Last month, The Gioi Di Dong's revenue dropped by 5 per cent compared to the previous year. This amounted to US$126.85 million, despite the company's focus on revenue growth.
Q.What is the updated store opening goal for The Gioi Di Dong by the end of this year?
What is the updated store opening goal for The Gioi Di Dong by the end of this year?
The chairman, Nguyen Duc Tai, stated The Gioi Di Dong now aims to open only 500 new locations by the end of this year. This is a significant reduction from their previous goal of 1000 stores.
Q.How did Mobile World's overall revenue and profit perform in the first quarter of this year?
How did Mobile World's overall revenue and profit perform in the first quarter of this year?
In the first quarter, Mobile World's total revenue reached $1.31 billion, a 43 per cent increase year on year. This generated a profit of $45.94 million, which was up by 44 per cent.
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