All 18 Auchan stores in Vietnam have now been acquired by Saigon Co.op.
The French retailer has decided to withdraw from Vietnam.
The French retailer and the Saigon Union of Trading Co-operatives (Saigon Co.op) has completed the handover process of Auchan’s whole business operations in Vietnam in late May.
Accordingly, 18 stores, of which three have been operating at a profit, together with Auchan’s e-commerce platform and 200 employees, have now been passed on to Saigon Co.op.
The value of the deal has not been disclosed. As per the agreement terms, Saigon Co.op will operate these stores until Lunar New Year 2020. After that, both parties will negotiate again on further cooperation opportunities, including exporting local products via Auchan’s global retail chain.
According to Saigon Co.op deputy general director Nguyen Anh Duc, following its acquisition of 18 stores of Auchan, Saigon Co.op will carry out some rearrangements from now till the end of the year.
In particularly, some stores will be closed down while others will be reopened under the brands of Co.opmart, Co.opXtra or Finelife.
Acquiring Auchan, according to Duc, is part of Saigon Co.op’s strategy to enhance its business operation further into e-commerce. The supermarket chain targets 1,000 stores this year, with 800 ones, including those from Auschan, are currently in operation.
Earlier on, Auchan Vietnam closed down 15 supermarkets and only maintained three stores in Ho Chi Minh City, including Auchan Crescent Mall, Auchan Era (in District 7) and Auchan Hoang Van Thu (in Tan Binh district). Auchan stores in Vietnam are mainly small- and medium-sized.
In mid-May 2019, the French retailer announced its plan to sell 18 stores in the country. Auchan Vietnam’s revenue reached some $50.4 million in 2018 yet still incurring losses overall.
Auchan opened its first store in Vietnam in 2015. It supermarket chain is located in Hanoi, Ho Chi Minh City, and Tay Ninh province.
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