Customers buy goods at VinMart. VinCommerce, operator of VinMart, has acquired Fivimart supermarket system. (Source: VNA)Hanoi (VNS/VNA) - Vingroup’sretail arm, VinCommerce, has completed the acquisition of the Fivimartsupermarket system, according to a Vingroup press release published on October8.
It has acquired 100 per cent ofFivimart from its operator, the Nhat Nam Joint Stock Company, to own all 23Fivimart supermarkets. These stores will be soon renamed to VinMart, thesupermarket brand of Vingroup.
“In VinCommerce’s developmentstrategy, VinMart and VinMart will be established not only Vinhomesresidential complexes but also other residential areas nationwide. This deal isone step in realising this strategy,” said Thai Thi Thanh Hai, VinCommerce CEO.
Besides continuing to sellconsumer goods, food, home appliances and cosmetic utensils, these newsupermarkets will also sell safe and fresh food and products with Vingroup’sbrands such as VinEco agricultural products, VinMart Cook’s pre-processed foodsand VinMart Home consumer goods.
Vingroup’s supermarket system waslaunched in 2014. After less than four years, the system of VinMart and VinMarthas had the largest scale and fastest growth rate in Vietnam.
The deal between VinCommerce andFivimart came after retail giant AEON terminated its deal with Hanoi-basedFivimart after four years due to losses, selling its 30 percent stake inFivimart.
Speculation about the divorcebetween Fivimart and Aeon started in early September.
Since the beginning of theirpartnership since 2015, Fivimart increased its supermarkets from 10 to 23,while revenue jumped from 1.07 trillion VND (45.64 million USD) to 1.3 trillionVND during the 2015-2017.
However, Fivimart posted lossesof 60 billion VND in 2015, which later widened to 96 billion VND a year later.In 2017, the local supermarket chain reported losses of 23 billion USD, resultingin an accumulated loss of 197 billion VND.-VNS/VNA
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