Vingroup announced the acquisition in a statement last Friday. A source from Vinatexmart confirmed the deal when reached by the Daily but declined to reveal its value.
Vinatexmart has 39 stores in more than 19 cities and provinces.
VinMart will operate the supermarket chain of Vinatex Fashion Co. Ltd. under the state-owned Vietnam National Garment and Textile Group (Vinatex) after paperwork is done, and arrange jobs for Vinatexmart’s current employees depending on their abilities.
Duong Thi Mai Hoa, general director of Vingroup, said in the statement that the local retail market has turned attractive to investors as it holds huge long-term potential. The entry of global retailers into Vietnam in recent years is clear evidence.
Vingroup, which wants to become a leading retailer in Vietnam, said the acquisition marks a new development stage of VinMart and VinMart+ in its target of having 100 supermarkets and 1,000 convenience stores in the next three years.
To realize the goals, Vingroup has since last year speeded up its investments in new facilities and acquisitions & mergers. Last October, Vingroup acquired a 70% stake at Ocean Retail and Assets Management Joint Stock Company with nine supermarkets and four convenience stores in northern Vietnam, and then took over 79 stores of Alphanam late last year.
News about Vingroup’s taking over of Vinatexmart emerged after Deputy Prime Minister Vu Van Ninh gave the green light to selling the supermarket chain in January this year.
Other investors showed interest in buying out the chain thanks to its presence in many parts of the country but Vingroup had more advantages as it has become one of the two strategic shareholders of Vinatex since September last year.
Vinatexmart was opened in October 2001 as a general supermarket chain with a focus on apparel whose annual sales are estimated at VND1.7 trillion.
The supermarket chain was growing fast in 2008-2012 with strong support of Vinatex and its target is to have 200 supermarkets by 2015. However, its expansion has slowed since 2013 due to sluggish sales.
Apparel makes up some 50% of goods at Vinatexmart’s stores but economic woes have hit sales of this product at supermarkets and commercial centers in the past 2-3 years as consumers have tightened spending.
VinMart and VinMart+ have developed 14 supermarkets and 23 convenience stores in Hanoi, Quang Ninh, Hai Duong, Ninh Binh and HCMC after more than four months these chains were established. Meanwhile, Vinatexmart has set up a strong foothold in the central, Central Highlands and southern regions.
Experts said the acquisition of Vinatexmart will help VinMart Supermarket Joint Stock Company rapidly expand its presence in the country and reach the target of 100 supermarkets and 1,000 convenience stores in the next three years.
Đăng ký: VietNam News