HCMC – Bach Hoa Xanh, a local minimart chain, has shut down hundreds of its stores over the past two months and more store closures will follow in near future, with poor performance cited as the main reason.
According to data on its website, the chain has 1,824 active stores as of this morning, July 13, down by 316 in the past two months.
Many Bach Hoa Xanh stores in HCMC are reportedly speeding up clearance sales in preparation for closings.
A representative of the chain told Tuoi Tre Online that most of the closed stores were underperforming. The active stores will operate as normal.
The representative added that only 50% of its 2,100 stores met all business requirements in mid-May. The minimart chain is continuing to review the business performance of other stores and focus investment on well-performing ones.
For products being offloaded, the suppliers will not be affected, the representative said.
In a report on the business performance of Mobile World Investment Corporation (MWG), which operates the retailer Bach Hoa Xanh, MWG earned over VND59 trillion in revenue in the first five months of 2022, up 14% year-on-year.
Of this, Bach Hoa Xanh contributed VND10.5 trillion to the total revenues or almost 18%. As planned, all the active Bach Hoa Xanh stores will operate with a new layout in the third quarter of this year and underperforming facilities will be tackled.