14:54 | 11/10/2018 Companies
Vingroup’s retail arm, VinCommerce, has completed the acquisition of the Fivimart supermarket system, according to a Vingroup press release published on October 8.
|Customers buy goods at VinMart. VinCommerce, operator of VinMart, has acquired Fivimart supermarket system - Source: VNA|
It has acquired 100 percent of Fivimart from its operator, the Nhat Nam Joint Stock Company, to own all 23 Fivimart supermarkets. These stores will be soon renamed to VinMart, the supermarket brand of Vingroup.
“In VinCommerce’s development strategy, VinMart and VinMart will be established not only Vinhomes residential complexes but also other residential areas nationwide. This deal is one step in realising this strategy,” said Thai Thi Thanh Hai, VinCommerce CEO.
Besides continuing to sell consumer goods, food, home appliances and cosmetic utensils, these new supermarkets will also sell safe and fresh food and products with Vingroup’s brands such as VinEco agricultural products, VinMart Cook’s pre-processed foods and VinMart Home consumer goods.
Vingroup’s supermarket system was launched in 2014. After less than four years, the system of VinMart and VinMart has had the largest scale and fastest growth rate in Vietnam.
The deal between VinCommerce and Fivimart came after retail giant AEON terminated its deal with Hanoi-based Fivimart after four years due to losses, selling its 30 percent stake in Fivimart.
Speculation about the divorce between Fivimart and Aeon started in early September.
Since the beginning of their partnership since 2015, Fivimart increased its supermarkets from 10 to 23, while revenue jumped from 1.07 trillion VND (US$45.64 million) to 1.3 trillion VND during the 2015-2017.
However, Fivimart posted losses of 60 billion VND in 2015, which later widened to 96 billion VND a year later. In 2017, the local supermarket chain reported losses of US$23 billion, resulting in an accumulated loss of 197 billion VND.