The Retail Consumer Giants: Can They Continue to Dominate Market Share?

Consumer Retail Sector Continues to Expand Market Share

In the last months of 2024, Bach Hoa Xanh restarted its store opening process in many provinces to prepare for the peak season, having just reported profits and successfully raised capital from foreign investment funds.

The mini supermarket chain, owned by Mobile World Investment Corporation (MWG), aims to open 100-200 new stores in 2025 to reach more customers in new areas, after nearly two years of focusing on improving profitability.

After restructuring its system of 1,700 stores across 25 provinces from Khanh Hoa to the south, Bach Hoa Xanh began opening its first stores in Da Nang, Quang Nam, and Quang Ngai in November 2024, and is also considering a trial opening in the North. This marks a notable shift in strategy for the chain, which had previously focused solely on downsizing its system and improving the efficiency of existing stores.

Meanwhile, WinCommerce – the company that manages the Winmart, Winmart+, and WIN systems, informed that in the third quarter of 2024, on average, a new store was opened every two days. In mid-August 2024, they announced that the expansion process was being accelerated again, with the potential to open a new store every day.

Aeon Mall, on the other hand, opened its first mall in Hue in September 2024, marking its first presence in Central Vietnam. On January 10, 2025, the brand continued its expansion with the opening of Aeon Mall Xuan Thuy in Hanoi.

In addition, Aeon Mall has opened smaller-scale supermarkets within malls developed by other companies, such as Crescent Mall in District 7 and Parc Mall in District 8, Ho Chi Minh City. This strategy allows the Japanese retail giant to diversify its business model and reach more Vietnamese customers.

Not only are large cities experiencing changes, but consumer markets in provinces and suburban areas are also undergoing significant transformations. Central Retail is increasing its presence in less economically developed areas through its Go! mini supermarket chain.

In line with this strategy, the Thai conglomerate Central Retail recently opened a Go! store in Bac Lieu in November 2024, and Go! Ninh Thuan is currently under development.

Both conglomerates mentioned above have a real estate development orientation for commercial leasing, along with placing their namesake supermarkets (Aeon and Go!) within these properties. Their approach is creating additional opportunities for brands to reach consumers in new markets, by concentrating customer traffic and providing business premises.

Furthermore, the Thai retailer plans to operate three more mini Go! stores in Huong Tra town, Hue, as well as in districts of Dong Thap and Binh Phuoc provinces.

Prospects for 2025

In a retail industry outlook report published on January 2, 2025, MBS Securities stated that the consumer retail sector still has potential in the medium and long term due to increasing disposable income and growing demand for a higher quality of life.

Rapid urbanization will expand access to modern retail models, a trend in the food retail industry. Additionally, the application of artificial intelligence (AI) and omni-channel sales strategies will enable retailers to tap into significant potential in this market.

Recently, modern retail models of large corporations such as Aeon Mall and Go!, as well as smaller-scale retailers like Bach Hoa Xanh and Wimart+, have successfully attracted a significant shift from traditional markets due to their competitive and efficient sales strategies.

MBS believes that after a profitable period for Bach Hoa Xanh and WinCommerce in 2025, it will be an opportune time for large modern retailers to expand their store networks and increase their reach, as consumer demand is expected to continue its recovery, and the spillover effects from the manufacturing sector will be stronger than in 2024, with exports forecasted to grow year-over-year.

Moreover, major foreign retailers are also implementing large-scale projects in Vietnam, underscoring the strong appeal of the Vietnamese retail market. It is anticipated that approximately eight large shopping malls will commence operations from the fourth quarter of 2024 to 2025.