ANTD.VN - Positive macroeconomics, accelerated personal consumption, and high domestic consumption demand during the Lunar New Year have contributed positively to the growth of the trade and service industry in January 2025. Vietnamese retail businesses promise to continue to reap "sweet fruit" in the new year.
Retail sales of goods and consumer service revenue in January 2025 increased sharply
Recently released figures from the General Statistics Office show that total retail sales of goods and consumer service revenue in January 2025 are estimated to increase by 9.5% over the same period last year. This figure increased significantly due to high domestic consumption demand during the Lunar New Year holiday, along with the strong recovery of tourism, which has contributed positively to the growth of the trade and service sector.
Total retail sales of goods and consumer services revenue at current prices in January 2025 are estimated at VND 573.3 trillion, up 2.7% over the previous month and up 9.5% over the same period last year (up 8.0% over the same period in 2024), if excluding price factors, it increased by 6.6% (up 5.6% over the same period in 2024).
Total retail sales of goods and consumer service revenue at current prices in January 2025 increased sharply compared to the same period last year thanks to the positive contribution of the accommodation, food and beverage, and travel and tourism services industries.
Of which, retail sales of goods in January 2025 were estimated at VND441.4 trillion, up 8.6% over the same period last year. Of which: Other fuels (excluding gasoline) increased by 31.1%; precious stones, precious metals and products increased by 15.5%; automobiles of all kinds increased by 11.6%; cultural and educational items increased by 8.9%; garments increased by 8.3%; food and foodstuffs increased by 7.8%; household appliances, tools and equipment increased by 1.5%.
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| Customers shopping at WinMart supermarket |
Also during the past time, domestic trade activities have recovered positively, consumer stimulus programs and concentrated promotional months have been organized simultaneously in localities across the country, and shopping demand has increased. Recent financial reports of enterprises show that: one of the leading companies in the retail sector has recorded significant growth in revenue and profit, WinCommerce (WCM) - the company operating the WinMart supermarket chain and WiN/WinMart+ stores recorded revenue of VND 8,557 billion in the fourth quarter of 2024, an increase of 11.8% over the same period. This result comes from new store models including Win (urban) and WinMart+ Rural (rural) when both had existing store revenue growth (LFL) compared to the same period of 10.4% and 12.5%, respectively.
Masan's retail segment continues to grow profitably
WCM also recorded a net profit before minority distribution (NPAT Pre-MI) of VND209 billion in the final quarter of the year. This is the second consecutive quarter that the modern retail chain has had a positive profit. During the year, WinCommerce revenue reached approximately VND32,961 billion across the entire network. Notably, WCM has brought in a positive net profit for the whole year of 2024.
By the end of 2024, WCM will operate nearly 4,000 points of sale, opening a net 95 stores since Q3. In Q4/2024, thanks to LFL growth, plus significant improvement in shrinkage, mini-supermarkets and supermarkets will achieve store operating profit margins (EBIT margins) of 6.5% and 5%, respectively.
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| Consumers buy MEAT Deli meat |
WinCommerce added that it has reduced its cash conversion cycle to 14 days thanks to optimized in-store inventory management and demand forecasting, which will contribute to operating cash flow of VND2,202 billion in 2024.
This year, Masan – the owner of WCM – has assigned a net revenue plan of VND35,600-36,900 billion, an 8-14% growth rate and a positive profit after tax for the whole year. The focus of the strategy is to expand the store network and accelerate LFL revenue growth.
Business expansion is a goal that businesses always aim for. When the business potential is strong enough, expansion will help businesses increase revenue, profit, brand reputation and many other factors. This can be considered the solution to the problem of profitable expansion that WinCommerce has implemented and has "reaped sweet fruit" in 2024 and will continue in the coming years.
Accordingly, in a recent meeting with investors, a representative of Masan said that the group will accelerate the expansion of the WCM network in 2025. In the highest scenario, the number of new stores is expected to reach 1,000 stores.
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| Customers shopping at WinCommerce supermarket system |
With a bright picture of the retail consumer market in early 2025, along with an effective business strategy, WCM - a solid pillar in Masan Group's journey to serve consumers, promises to continue to "bring money home to mom" in the coming time.
Source: https://www.anninhthudo.vn/tim-ra-mo-hinh-cua-hang-thanh-cong-mang-ban-le-cua-masan-muon-mo-them-1000-diem-ban-post603537.antd
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