Vietnam’s Vingroup’s retail arm, VinCommerce, has completed the acquisition of the Fivimart supermarket system,
According to a press release published on October 8, Vingroup has acquired 100 % of Fivimart from its operator to own all 23 Fivimart supermarkets. These stores will be soon renamed to VinMart, the supermarket brand of Vingroup.
“In VinCommerce’s development strategy, VinMart and VinMart will be established not only Vinhomes residential complexes but also other residential areas nationwide. This deal is one step in realising this strategy,” saidVinCommerce CEO, Ms. Thai Thi Thanh Hai.
Besides continuing to sell consumer goods, food, home appliances and cosmetic utensils, these new supermarkets will also sell safe and fresh food and products with Vingroup’s brands such as VinEco agricultural products, VinMart Cook’s pre-processed foods and VinMart Home consumer goods.
Vingroup’s supermarket system was launched in 2014. After less than four years, the system of VinMart and VinMart has had the largest scale and fastest growth rate in Vietnam.
The deal between VinCommerce and Fivimart came after retail giant AEON terminated its deal with Hanoi-based Fivimart after four years due to losses, selling its 30 percent stake in Fivimart.
Speculation about the divorce between Fivimart and Aeon started in early September.
Since the beginning of their partnership since 2015, Fivimart increased its supermarkets from 10 to 23, while revenue jumped fromVND 1.07 trillion (USD 45.64 million) toVND 1.3 trillion during the 2015-2017.
However, Fivimart posted losses ofVND 60 billion in 2015, which later widened to VND96 billion a year later. In 2017, the local supermarket chain reported losses of 23 billion USD, resulting in an accumulated loss of VND 197 billion.
This article was first posted on VNS/VNA