Bách Hóa Xanh, a popular Vietnamese supermarket chain, has announced its expansion plans for August 2024. The company aims to open 7 new stores across 4 provinces: Ho Chi Minh City (3 stores), Long An (1 store), Binh Duong (1 store), and Dong Nai (2 stores). This expansion comes as a positive sign, as the number of Bach Hoa Xanh stores has remained relatively stagnant over the past two years. As of Q2 2024, the company operates 1,701 stores, a modest increase from the 1,698 stores at the beginning of the year.
Earlier in 2022, the company made a bold decision to close down hundreds of stores as part of a strategic restructuring and rebranding effort, shifting its positioning from a “modern market” to a “mini-supermarket.” This recent expansion announcement comes on the heels of the supermarket chain’s first profitable quarter.
According to the Q2 2024 financial report of Đầu tư Thế giới Di động (MWG), Bach Hoa Xanh’s parent company, the supermarket chain’s revenue for the first half of the year reached VND 19.4 trillion, a 42% increase from the same period last year and the highest ever recorded. Notably, in Q2 alone, the revenue was approximately VND 10.3 trillion, and the chain turned its first profit, earning nearly VND 7 billion.
Month-over-month, revenue continued to grow, surpassing VND 3.65 trillion in June 2023. Impressively, the average revenue per store hit a record high of VND 2.1 billion per store per month, except for July 2021, when revenue was impacted by the Covid pandemic. This exceptional performance is attributed to the company’s strategy to focus on revenue growth and cost optimization, particularly in store operations and logistics.
The recent milestones achieved by Bach Hoa Xanh validate the expectations and confidence of MWG’s leadership. As stated by MWG’s Chairman, Nguyen Duc Tai, the supermarket chain is expected to be a significant growth driver for the entire MWG group in the next five years. Tai also emphasized that once Bach Hoa Xanh achieves a large enough scale and profitability, the company will be ready to go public, fulfilling its commitments to investors and the expectations of its shareholders.
Echoing this sentiment, Bach Hoa Xanh’s CEO, Pham Van Trong, expressed his confidence in the company’s ability to achieve a four-digit profit (in billions) within the next 1-2 years. With a potential for further expansion, Bach Hoa Xanh’s revenue for 2024 is projected to surpass VND 39 trillion.
