Mobile World’s grocery chain reports 269 pct sales growth

Mobile World Investment Corporation (trading code MWG) said Bach Hoa Xanh’s revenue reached VND2 trillion ($86.1 million) in the period.

Initially it had reported plans to open 1,000 Bach Hoa Xanh grocery stores in HCMC, but later halved the number due to a shift in focus to optimal locations rather than expansion at any cost.

The grocer’s launched a new larger store model last July, almost doubling the size to 300 square meters.

According to the Ho Chi Minh City Securities Corporation, Bach Hoa Xanh could achieve revenues of VND4 trillion ($172 million) this year given it is likely to have 550 stores by year-end.

However, the short shelf life of seafood and fresh vegetables heightens the challenge of management for the chain, including reducing wastage, according to HSC analysts.

MWG’s consolidated net revenue was VND51.69 trillion ($2.22 billion) in the first seven months of the year, reaching 60 per cent of the private firm’s whole-year target.

The company operates thegioididong mobile phone retail chain, Dien May Xanh (including Tran Anh) consumer electronics retail chain, Bach Hoa Xanh grocery retail chain and Vuivui.com E-commerce platform.

On its website, MWG claims it is the number one retailer in Vietnam by revenue and net profit after tax with more than 2,000 stores covering all of Vietnam’s 63 cities and provinces.

MWG started piloting the “modern wet market” Bach Hoa Xanh concept in late 2015. Bach Hoa Xanh is a minimart/food-store chain specializing on fresh foods and daily basic needs.