The Evolution of An Khang: A Tale of Strategic Adaptations
According to the Modern Trade Retail Trends report published by Q&Me, The Gioi Di Dong’s (MWG) An Khang pharmacy chain no longer has a presence in Hanoi. In fact, information about its Hanoi branches has disappeared from the chain’s website.
The report also reveals that the chain currently operates 326 stores, with 77 located in Ho Chi Minh City and the remaining spread across other provinces. An Khang’s withdrawal from Hanoi signals significant strategic shifts within the company or intense competitive pressure from rivals.
The 2,000-Store Dream: A Distant Reality
An Khang Pharmacy, formerly known as Phuc An Khang, was established in 2002. For over a decade, Phuc An Khang maintained a small-scale presence primarily in Ho Chi Minh City.
2017 marked a pivotal moment when The Gioi Di Dong, a retail giant in the mobile phone and appliance industry, officially acquired 49% of Phuc An Khang’s shares for VND 62 billion. The chain was then rebranded as An Khang Pharmacy and embarked on an ambitious expansion strategy, aiming for modern retail growth.
In 2022, MWG set an ambitious goal to expand the An Khang chain to 2,000 stores nationwide by the end of 2023. This strategy entailed opening over 100 new stores each month, resulting in 510 stores by the first half of 2022.
However, by the end of 2022, the expansion pace slowed as business efficiency issues surfaced. The average revenue per store fell short of expectations, reaching only VND 400-500 million per month, while the estimated break-even point, according to Mr. Doan Van Hieu Em, a member of MWG’s Board of Directors, was VND 550 million. Consequently, An Khang fell short of its initial targets, ending 2023 with just 527 stores—a far cry from the envisioned 2,000.
In 2024, MWG underwent a significant restructuring, downsizing the number of pharmacies to 326, a number maintained through the first quarter of 2025.
As of the first quarter of 2025, MWG has incurred cumulative losses of over VND 1,033 billion from An Khang. Specifically, the chain recorded a loss of VND 306.2 billion in 2022, VND 342.9 billion in 2023, VND 346.7 billion in 2024, and an additional loss of VND 31.2 billion in the first quarter of 2025.
Despite the setbacks, the corporation remains committed to its long-term development plans for the chain. At MWG’s Annual General Meeting on April 26, 2025, Mr. Doan Van Hieu Em shared that An Khang had discovered more effective operational formulas in 2024, following strategic adjustments due to the post-COVID-19 recession.
When questioned about An Khang’s absence in the vaccination services arena, a domain exploited by several domestic and foreign pharmaceutical chains, Mr. Nguyen Duc Tai, Chairman of MWG’s Board of Directors, acknowledged it as a “delicate” issue, stating that he had not encountered similar models in his international travels.
Mr. Tai candidly expressed: “It’s best for the pharmacy to focus on selling medicines well, ensuring the right medicines and prescriptions, and safeguarding consumers’ health.”
Ky Thu
