Consumers shop at a Saigon Co.op supermarket (Photo: VNA) HCM City (VNA) – The Saigon Union of Trading Co-operatives (Saigon Co.op) will take over 18 stores and entire e-commerce retail system of France’s Auchan Retail in Vietnam under a merger and acquisition deal reached between two sides on late June 27.
As for the three operating supermarkets, Saigon Co.op will maintain Auchan brand until February 2020, while the 15 supermarkets in Ho Chi Minh City, Hanoi and Tay Ninh, which were closed, will be renovated and put into operation under Saigon Co.op brands of Co.opmart, Co.opXtra and Finelife.
Besides, Saigon Co.op will work to ensure rights of Auchan’s customers.
Saigon Co.op and Auchan also discussed various cooperation prospects like imports, exports, and many other business opportunities.
According to Deputy General Director of Saigon Co.op Nguyen Anh Duc, the takeover of Auchan is a vivid illustration for Saigon Co.op’s strengths in modern commerce, and responsibility to Vietnamese consumers.
Meanwhile, Director of Auchan Retail Vietnam Philippe Courbois said that the contract with Saigon Co.op is expected to lay a foundation for both sides to collaborate in other sectors in the time ahead.
The French group entered Vietnam in 2015 and had developed a total of 21 stores in the nation. Following the closure of three outlets, Auchan continued to shut down 15 loss-making stores in mid-May, preparing for its plan to exit the Vietnamese market. The remaining three marts are being operated in Ho Chi Minh City.
The whole 18 Auchan outlets generated 45 million euros (50.4 million USD) in revenue in 2018, yet they still suffered losses.
Auchan used 1,000 workers, and had 10 billion customers.-VNA
VNA
