The Mobile World ‘Wipes Out’ Over 170 Stores in 1 Month

Store Closures, Revenue Up: MWG’s Strategic Shift

Mobile World Investment Corporation (MWG) has announced its financial results for the first seven months of the year, revealing a 15% year-on-year increase in revenue to VND 76,541 billion. With this, MWG has achieved 61% of its annual revenue target.

A breakdown of the revenue structure shows that Dien May Xanh contributed the highest share at 46.2%, followed by Bach Hoa Xanh at 30.1%, The Gioi Di Dong (including Topzone) at 20.9%, and other segments. Specifically, The Gioi Di Dong and Dien May Xanh’s revenue reached VND 7,200 billion, a 5% increase year-on-year, but a decrease compared to the previous month.

For the first seven months of the year, the combined revenue of the The Gioi Di Dong and Dien May Xanh chains reached VND 51,300 billion, a rise of over 6% compared to the same period last year. Bach Hoa Xanh contributed approximately VND 23,000 billion to MWG’s revenue, marking a significant 40% year-on-year increase.

Notably, the wave of store closures for The Gioi Di Dong outlets continued to spread. As of the end of July, MWG operated 1,028 The Gioi Di Dong stores (including Topzone), a reduction of 18 stores compared to the end of June. Similarly, the Dien May Xanh chain decreased by 59 stores, leaving 2,034 outlets.

An Khang Pharmacy Chain to Undergo Major Restructuring

The most significant reduction was seen in the An Khang pharmacy chain, which closed 94 stores within a month, leaving 387 pharmacies. Compared to the same period last year, The Gioi Di Dong has scaled down 150 An Khang pharmacies.

At a recent investor and shareholder meeting of MWG, Mr. Doan Van Hieu Em, CEO of The Gioi Di Dong, shared that the An Khang pharmacy chain is undergoing a restructuring process similar to that of Bach Hoa Xanh and Dien May Xanh. As part of this process, MWG is evaluating each pharmacy and will close those that fail to meet revenue and profit expectations.

As of December 31, 2023, the An Khang chain operated 527 pharmacies, but by the end of the second quarter of this year, that number had decreased to 481 outlets. Currently, each pharmacy generates an average revenue of VND 500 million per month. The company plans to further reduce the number of An Khang pharmacies to 300 by the end of this year, resulting in the closure of nearly 200 additional stores by the year’s end.

The An Khang pharmacy chain, originally known as Phuc An Khang, was acquired by The Gioi Di Dong in 2017. However, it was not until 2022 that MWG began to focus its efforts on expanding the An Khang chain, opening hundreds of new stores. During that time, MWG set ambitious goals, aiming for 800 stores by the end of 2022 and 2,000 stores by the end of 2023.

Nevertheless, the chain’s financial performance fell short of expectations, leading to a halt in the expansion plans. In 2023, An Khang managed to increase its number of pharmacies by only 27, reaching a total of 527.

For the years 2022 and 2023, the An Khang chain incurred losses of over VND 300 billion each year. In the first half of 2024, An Khang reported a loss of VND 172 billion, bringing the cumulative loss as of the end of June 2024 to nearly VND 834 billion.

This year, The Gioi Di Dong has set targets for An Khang to achieve double-digit growth, increase market share, and reach breakeven by December 31.