Bach Hoa Xanh is set to become profitable in the last quarter this year after closing 400 ineffective outlets in the first seven months, Mobile World Chairman Nguyen Duc Tai has said.
The bulk closure is part of the company’s plan to renovate the grocery chain and remove seven low-performing product categories, he told shareholders at a recent meeting, adding that the plan is nearly complete.
“It is true that we closed hundreds of outlets. But what happened? Total revenue continued to rise.”
There were 1,735 Bach Hoa Xanh outlets by the end of last month, with a monthly average revenue of VND1.3 billion recorded by each.
The chain’s revenue has been rising monthly since March and hit VND2.35 trillion in July, accounting for 18.6 percent of Mobile World’s total.
In the 2017-2020 period, Bach Hoa Xanh pursued to offer customers a better shopping experience than traditional markets, and there were times when it opened a new outlet every day with hundreds of employees recruited each month.
But now Mobile World wants to transform the chain’s model from “modern market” to “mini supermarkets” as it seeks to make customers feel like they are shopping at big stores.