Consumers shop at a convenience store in HCM City (Photo: VNA) Hanoi (VNA) – With certain advantages, conveniencestores have been an increasingly popular shopping destination for customers,and they have also become a choice for domestic retailers to compete withforeign rivals.
The comment was made by Dang Thuy Ha, Directorfor the northern region at the Nielsen Vietnam market research company.
Some surveys show that Vietnam owns manyfavourable conditions to develop convenience stores when the urbanisation ratehas reached 30 percent and young people account for up to 57 percent of thepopulation. Notably, the middle class – the main driver of convenience stores’development – will rise almost three-fold by 2025 compared to at present.
According to Nielsen Vietnam, the number ofconvenience stores nationwide has increased four-fold since 2012.
Many foreign retailers like Circle K of the USor Shop&Go of Singapore came to Vietnam between 2005 and 2008 and havecontinually expanded their networks. In Hanoi and Ho Chi Minh City, Circle Khas had more than 300 stores while Shop&Go has opened over 160 stores.
Domestic businesses have also showed goodperformance in developing convenience stores with such brands as Co.op Food, SatraFoods or Vinmart+.
Last December alone, the VinCommerce JSC openedup to 238 Vinmart+ stores across the country, raising its convenience stores to1,700 in total and becoming the biggest chain of such stores in Vietnam. Thefirm plans to open 3,000 similar outlets in the coming years.
Not only retailers of consumer goods, techproduct sellers of Vietnam have also entered this market, such as Bach Hoa Xanhstores of the The gioi Di dong (Mobile World) JSC.
Deputy Director of the Hanoi Department of Industryand Trade Tran Thi Phuong Lan said despite the modest area, convenience storesare located within residential areas and offer consumers a variety of essentialgoods from food, beverages to needles and thread. Customers can even payelectricity, water and telephone bills or book plane tickets.
She noted the municipal People’s Committee hasissued a plan on developing trade and services until 2025. Accordingly, Hanoiaims to have 1,000 convenience stores by the end of 2020.-VNA
VNA
