The Gioi Di Dong, a Vietnam retailer known for its 450-strong chain of bright yellow phone retail stores says it will launch a new convenience store format in October.
Dang Thanh Phong, a spokesman for the company which is also known as Mobile World Investment Corporation, said the company plans to open between 6000 and 8000 convenience stores by 2020, and take up to15 per cent of convenience food and grocery market.
Mobile World also currently operates 37 electronic stores known as Dien May Xanh.
Vietnam’s convenience store sector remains in its infancy despite relatively recent forays by Circle K and FamilyMart. 7-Eleven, the world’s largest c-store operator, recently signed a Vietnam partner in IFB Vietnam, which owns the local Pizza Hut franchise. But 7-Eleven is planning just 1000 stores over the next decade, a fact that tests the credibility of Mobile World’s ambitions.
The first five new The Gioi Di Dong convenience stores will open in October, with as many as 50 trading by the end of this year according to information obtained by the Saigon Times Online.
In an initial year-long trial phase, the company will invest up to VND50 billion (US$2.24 million) refining the concept.
The Gioi Di Dong says its stores will have a footprint of between 150 and 400 sqm depending on their location and will trade from 6am to 9pm – shorter hours than the c-stores of established international brands, some of which trade around the clock.
A month out from the first opening the chain’s brand name has yet to be chosen.
CEO Tran Kinh Doanh was quoted on news website Zing.vn says the new store network will target customers of traditional markets and grocery stores.
While it may lack experience in convenience or food retailing, The Gioi Di Dong has a strong pedigree in retailing: In the first seven months of this year it reported sales of VND12.92 trillion, or US$566.26 million – a year on year increase of 158 per cent.
