Saigon Co.op continuously opens many new points of sale in 2024, aiming to develop 154 new points of sale in 2025 - Photo QUANG DINH
On March 17, at the Conference to review business activities, Party building work in 2024 and operational direction in 2025, the Ho Chi Minh City Union of Trading Cooperatives (Saigon Co.op) set a target of e-commerce sales in 2025 to reach VND 3,500 billion, an increase of 30% over the same period.
It is expected that in the first half of 2025, Saigon Co.op's new e-commerce platform will be officially launched, expected to help Saigon Co.op improve its competitiveness in the retail market and effectively reach potential young customers.
The plan sets a growth rate of about 6% in 2025, but the unit is implementing many solutions to aim for double-digit growth, while ensuring a sustainable development foundation for the period 2026 onwards.
Overcoming difficulties, reaching the revenue milestone of 30,000 billion VND
In 2024, the world and domestic economic situation faced many challenges, Saigon Co.op still overcame difficulties to reach a revenue milestone of nearly 30,000 billion VND, maintained gross profit, created additional rental revenue and controlled costs.
Notably in 2024, Saigon Co.op's sales received a contribution of more than 10% from e-commerce, growing nearly 50% over the same period; Co.op's private label products grew 7% over the same period.
Regarding network development in 2024, all distribution models of Saigon Co.op including: Co.opmart, Co.opXtra, Co.op Food, Co.op Smile, Finelife and Cheers will open new points of sale, contributing to increasing the retail area for the unit.
In particular, typical new points of sale such as: Co.opmart Pham The Hien, Co.opXtra Long Binh, Co.opXtra Ta Quang Buu, Finelife Lumiere An Phu are put into operation in a streamlined direction, applying creative innovation, modern artificial intelligence technology, bringing optimal experience to customers.
Over the past year, Saigon Co.op has continuously expanded its market stabilization activities and supply-demand connection to ensure a supply of goods at reasonable prices for the people.
The company has deployed more than 473 mobile sales trips to remote areas, industrial parks, export processing zones... to help people access sources of goods at stable prices, especially in the context of market fluctuations.
In addition, Vietnamese retailers continue to affirm their pioneering role in environmental protection activities with many meaningful programs such as: "Green consumption", "Controlling the quality of goods in Ho Chi Minh City - Green tick of responsibility" and the "Green living" movement.
These activities not only raise public awareness of sustainable consumption but also promote the trend of using environmentally friendly products and reducing waste.
In addition, Saigon Co.op also actively participates in a series of socio-economic development cooperation programs between Ho Chi Minh City and provinces and cities across the country.
Through cooperation agreements, the enterprise has strongly developed the supply chain and circulation of goods, helping to connect goods sources from many localities to its retail system such as: Co.opmart, Co.opXtra, Co.op Food...
Through that, Saigon Co.op not only contributes to promoting trade but also ensures a rich and stable source of goods for consumers nationwide.
In 2024, Saigon Co.op will officially explore a new business area with the opening of Charmant Suites Can Tho hotel; start construction of a commercial service - office project at 102 Nam Ky Khoi Nghia, Ben Nghe ward, District 1, Ho Chi Minh City, completing the puzzle of investment, development, management and operation of commercial real estate business.
Digital transformation, improvement of logistics activities and warehouse systems continue to be promoted, combined with the reform of goods, proactively participating in and implementing many trade promotion activities; implementing programs of a specific nature, unique to the Saigon Co.op system; continuing to promote and search for, build raw material areas; gradually adapting to the "green transformation" trend...
Three strategic pillars for high growth
Regarding the growth target in 2025, Saigon Co.op General Director Nguyen Anh Duc said that the plan sets a growth rate of about 6%, but the unit is implementing many solutions to aim for double-digit growth, while ensuring a sustainable development foundation for the period 2026 onwards.
Sharing more about this "ambition", Mr. Nguyen Anh Duc said: The growth rate of the service and retail trade industry is usually about 1.5 times higher than GDP. With a forecast of GDP growth in 2025 of about 8%, the retail and service trade industry can achieve a growth rate of 12 - 14%.
This is in line with the trade development strategy that the Government has issued in recent times. Based on that foundation, Saigon Co.op is taking advantage of every opportunity and trend to promote development in 2025.
To achieve the goal of breakthrough but sustainable growth, Saigon Co.op identified three important pillars that need to be changed and improved. In particular, it will focus on restructuring the product portfolio: the unit will continue to optimize the product structure, improve product quality to meet the diverse needs of customers.
The second is to develop services, improve customer experience by improving service quality, optimizing operating processes. Finally, innovate business models by applying flexible business models, creating added value for customers and partners.
Enterprises will exploit the advantages of physical stores to develop online retail models in a different direction compared to pure e-commerce platforms. At the same time, Vietnamese retailers also determine to promote digitalization and digital transformation according to the direction of Resolution 57, to improve operational efficiency and customer experience.
"One of the important factors in implementing Resolution 57 is to promote innovation and at the same time restructure the organization to create a stronger development space," the general director of Saigon Co.op further explained.
In addition, the unit focuses on differentiation strategies through market segmentation and specific business models for each geographical area. Strengthening operational discipline is also prioritized to optimize costs, increase profits and create a foundation for sustainable development.
Finally, Saigon Co.op will restructure its organization, open up new growth space, and promote innovation to strengthen its competitive advantage in the market.
According to Mr. Nguyen Anh Duc, to achieve high growth, we cannot rely solely on the growth rate of previous years but need comprehensive innovation. In which, innovation in culture and digitalization aims to create different values.
At the same time, the system must restructure business operations to optimize efficiency and create greater growth potential.
"In order to realize the double-digit growth target, Saigon Co.op is implementing nine key projects based on current challenges and industry development trends.
These projects not only help Saigon Co.op achieve its business goals but also contribute positively to the development of the trade, service and retail industry in Vietnam.
We want to contribute and create positive impacts on national GDP growth and Ho Chi Minh City's GRDP in the coming time," Mr. Nguyen Anh Duc affirmed.
9 fundamental projects, drastic reforms in 2025
1 Promote effective business.
2 Improve the shopping environment.
3 "Major surgery" Co.op Food and small model.
4 Ecommerce Conversions.
5 Complete information technology projects.
6 Complete warehouse and logistics system.
7 Commodity reform.
8 Reserve fund for point of sale development.
9. Structure to be refined, compact, strong, efficient, effective and efficient according to Resolution 18-NQ/TW.
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