Circle K is no longer "alone" in the convenience store segment in the capital as this market segment has just welcomed "newcomer" GS25.
Retail market more vibrant
From March 14, the GS25 convenience store chain simultaneously opened its first 6 locations in Hanoi. This convenience store chain from Korea decided to "go North" after gaining a foothold in the Ho Chi Minh City market.
Launched in the Vietnamese market in early January 2018, the first GS25 store was opened in Ho Chi Minh City, located in a high-rise building on Hai Ba Trung Street, District 1. As a 24-hour convenience store chain, GS25 serves customers around the clock. Up to now, a series of new GS25 stores have continuously covered major roads in Ho Chi Minh City and many other provinces and cities. In particular, during the complicated development of the Covid-19 epidemic in many provinces and cities, many businesses in the same industry faced the risk of suspending operations or temporarily closing to save costs. However, GS25 Vietnam still chose to continue to promote operations, opening a large number of stores in the provinces of Binh Duong, Vung Tau, Dong Nai. Currently, GS25 has more than 200 stores, mainly in the South such as Ho Chi Minh City, Can Tho, Binh Duong, Ba Ria - Vung Tau, Dong Nai, Tien Giang, ...
While many foreign retail giants quickly left Vietnam after not achieving the expected success, GS25 has been steadfast in operating and developing in Vietnam for the past 7 years. According to the plan, within 10 years, GS25 will open 2,500 stores nationwide. Up to now, after 7 years, although it has only reached more than 200 stores, its relatively good performance in the southern provinces shows that this retail enterprise understands the market and meets the needs of consumers. The fact that it has "gone north" and been warmly welcomed in Hanoi shows that the future of this enterprise is quite "bright" in the capital.
Along with GS25, earlier this year, the 7-Eleven convenience store chain also hinted at plans to open in Hanoi. This is the first time 7-Eleven has gone North since entering Vietnam in 2017. Currently, 7-Eleven has about 80 stores in Vietnam.
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| GS25 launched in the capital from March 14, 2025 (Photo: Nguyen Chuan) |
If 7-Eleven enters the capital in the near future, the "game" in the capital's convenience store market will be more exciting than ever. Because in Hanoi, Circle K has long been the exclusive market. This chain of stores attracts a lot of young people because of its 24/7 business model. Not just a place for quick shopping, these stores have also become check-in, gathering and experience places for young people.
Located in densely populated areas, schools... although the area is not too large, Circle K has met the convenience factor very well when it is not only a place to sell simple goods but also very quickly updates the consumption trends of young people. Fast food that catches up with the trend, bright "virtual living" corners, along with a diverse range of goods, meeting the consumption needs of young audiences, Circle K has become a favorite place for consumers. In addition, because it is "one market", Circle K has been quite convenient when expanding its system in Hanoi. Currently, Circle K has more than 190 stores in Hanoi. In the Northern region, Circle K has also expanded to provinces such as: Thai Nguyen, Hung Yen, Bac Ninh, Hai Phong, Quang Ninh...
According to statistics, by 2024, Vietnam will have about 1,374 convenience stores, with Ho Chi Minh City leading the market. In fact, the brands dominating the convenience store market share in Vietnam are all from abroad.
Circle K is considered the strongest player when it holds the leading position in market share. In terms of revenue in 2023, Circle K accounts for 38% of the market share, followed by Ministop (15%), GS25 (14%), Family Mart (12%) and 7-Eleven (8%).
As one of the fastest growing models among modern retail formats in Vietnam, convenience stores are forecast to add US$226.4 billion, with a compound annual growth rate (CAGR) of over 13% from 2023 to 2028.
Is it "short-lived"?
Convenience stores in particular and retail stores in general are always welcomed in Vietnam because Vietnam is a very attractive market, with a young population and very high demand for consumption and shopping. In addition, busy life makes the need for quick and convenient consumption a trend for many young consumers. This is the reason why convenience stores are popular, instead of supermarket or hypermarket models that require time for parking, shopping, and payment.
From a macro perspective, the presence of retail businesses in Vietnam will help increase the consumption of local goods and create jobs for workers. Therefore, retail businesses are always welcome in Vietnam if they meet legal requirements.
In fact, convenience stores are considered an important trend for future retail. Speaking to reporters of the Industry and Trade Newspaper, a representative of the Winmart supermarket chain said that by 2025, the system aims to upgrade a series of existing WinMart supermarkets, and open hundreds of new WinMart+/WiN stores in many provinces and cities. In particular, new urban areas, developed residential areas, rural areas, and suburban areas will be the focus of the expansion plan, helping customers easily access quality products at stable prices every day.
WinMart+/WiN stores are all convenience stores, located deep in residential areas, convenient for people to shop for goods. Thus, the upcoming convenience store “game” will not only attract foreign businesses but also Vietnamese businesses.
However, the lesson from the departure of many foreign retailers from the market is still there. Therefore, in an interview with the reporter of the Industry and Trade Newspaper, economic expert Vu Vinh Phu - former Deputy Director of the Hanoi Department of Trade, former Chairman of the Hanoi Supermarket Association said that in order to operate well in Vietnam, the above brands must also prepare conditions such as: location, scale, human resources... In addition, they must grasp the ever-changing consumption trends of the people, especially young consumers, to be able to operate long-term in Vietnam.
“ Vietnamese people have increasingly high incomes, high consumption needs, and a consumption habit that emphasizes convenience, wanting to integrate many needs in one place, for example, shopping and paying for electricity and water; shopping and entertainment; shopping but not wanting to park too long or too far away… Businesses need to grasp these consumer trends well to “firmly establish a foothold” in the Vietnamese market, not letting the game in the retail market be just a “short-lived” game – said Mr. Vu Vinh Phu.
| According to the General Statistics Office, retail sales of goods in 2024 are estimated at VND4,921.7 trillion, accounting for 77% of total retail sales of goods and consumer services revenue, up 8.3% over the previous year. In 2025, total retail sales are expected to increase by double digits, contributing to an 8% increase in GDP. |
Source: https://congthuong.vn/chao-don-tan-binh-gs25-mieng-banh-ban-le-chia-ra-sao-378479.html
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