Retail actively expands network despite slow recovery of purchasing power

In the first 8 months of 2024, although the recovery speed was not too fast, the Vietnamese retail market was still quite vibrant with the race to expand premises of domestic and foreign giants.

Consumers always visit different stores to compare prices and look for deals, before deciding to shop - Photo: N.BINH

On weekends, many people in Ho Chi Minh City flock to AEON Ta Quang Buu (District 8) - a supermarket recently opened by a tycoon. retail Japan AEON opens midweek - for shopping and enjoying a relaxing atmosphere, eating and drinking.

New open race

Ms. Thu Tuyet said that she has moved to this apartment complex three years ago and now she can comfortably shop and go to the market every day with the supermarket right in the residential area. In the past month, this area has had two new shopping centers.

Previously, Saigon Co.op officially put into operation Co.opmart Pham The Hien (District 8), marking the 44th supermarket of this system. The supermarket is operated according to the Co.opmart model, which is streamlined in both area and business lines, bringing convenient and friendly shopping experiences to customers.

Mr. Furusawa Yasuyuki, General Director of Aeon Vietnam, said the supermarket AEON is developing a model of department stores and supermarkets located outside AEON shopping centers. This is a new model aimed at "adapting and being flexible" by the Japanese retailer since the pandemic.

"The system is still actively expanding new networks and diversifying retail types. In addition to shopping malls, AEON also cooperates with business partners and opens many different models and scales suitable for each locality," Mr. Yasuyuki added.

Not only Hanoi or Ho Chi Minh City, AEON has expanded to Da Nang, Hai Phong and most recently Hue, with a shopping model suitable for the people. Accordingly, looking for opportunities to develop the network, opening as many new stores as possible to increase contact points and connect directly with customers.

At the same time, combine e-commerce development and have appropriate product strategies, closely cooperate with local suppliers.

Mr. Nguyen Anh Duc, Chairman of the Vietnam Retailers Association, said that in the context of the retail market showing signs of slowing down due to purchasing power, network expansion will be somewhat cautious, especially large-scale points of sale.

However, with the cyclical nature of the economy, in the first 8 months of 2024, although the recovery rate was not too fast, the retail market gradually showed positive signs.

Promotional competition leads the market

According to data from the General Statistics Office, final consumption in the first half of 2024 increased by 5.78% over the same period last year, while it increased by 2.68% in the same period in 2023. The proportion of retail enterprises with equivalent or higher revenue reached 74.6%, while 66.3% of enterprises maintained and improved profits compared to the same period last year.

Although the majority of businesses recorded business performance equal to or exceeding that of 2023, the increase was only modest, and 25.4% of businesses still saw a decrease in revenue, and more than a third of businesses had worse profits.

According to the report of Vietnam Report released on the occasion of announcing the list of Top 10 prestigious retail companies in 2024, despite still facing some systemic challenges, the overall picture of the retail industry is forecasted to have more potential to break through in the following months, on the basis of stability and recovery prospects of the Vietnamese economy, as well as the trend of being more bustling during the peak time at the end of the year of this market.

Having gone through a period of volatility and economic hardship, consumers are now becoming more cautious about spending and more price sensitive.

According to a survey by Vietnam Report, attractive incentive programs, promotions and loyalty programs have risen to second place in the top 6 priorities of consumers when choosing where to buy.

87.1% of consumers said they always shop around to compare prices and look for deals before making a purchase decision.

Although price-sensitive, consumers are not willing to compromise on quality, but are looking for balance, becoming more rational in decision making, prioritizing products with high quality and long-term value, "hunting" for products on promotion programs to save.

Fierce competition between businesses has accelerated the process of restructuring and reshaping the market. In the long term, this competition will contribute to making the market more transparent, promoting the development of highly competitive businesses with more effective and flexible business strategies to increase market share and consolidate their position.

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