Big C is full of beans despite depressed retail market

Big C, managed under the umbrella of Casino Group and its partner Viet-Nhat Real Estate, expressed its ambition to open three stores in northern Quang Ninh province’s  Halong and Uong Bi cities in recent meeting between the group executives and provincial officials.

Its three stores Big C Hon Gai, Big C Halong and Big C Uong Bi would be have total capital of $33 million-$48.1 million, in which Big C Hon Gai and Big C Halong were expected to come up in Halong city’s Tran Hung Dao street and Bai Chay covering 16,600 square metre and 30,000sqm, respectively while Big C Uong Bi would be constructed in Uong Bi city.

Nguyen Van Thanh, vice chairman of Quang Ninh People’s Committee, said the group should give priority to constructing Big C Halong because it was the most suitable place. He also committed to hand over the land to contractors after one month, to celebrate the 50-year anniversary of Quang Ninh province in October, 2013.

However, Big C refused to release further information when questioned by VIR. Big C, the owner of nearly 20 stores and supermarkets, last month opened Big C Binh Duong Green Square Commercial Centre in Binh Duong province.

The 2012 Global Retail Development Index  report shows that Vietnam has consistently dropped in the rankings, from its top place in 2008 to 23rd position last year, and it is no longer in the top 30.
“The global crisis surely affected to purchasing power, however, the challenge is an opportunity for retail,” said Nguyen Thanh Huyen, spokesperson of French-backed retailer Big C.

Big C still has optimistic eyes about Vietnam as it has a population of nearly 90 million. “In retail and distribution sector, Vietnam’s modern retail channels hold just 20 per cent of the total distribution market, therefore there’s much room for retailers and distributors,” said Huyen.

In the same movement, Japan’s Aeon Group  confirmed that it would start construction of the $95 million Aeon-Binh Duong commercial centre this year after getting the nod from Binh Duong province.

Thailand-based Berli Jucker also expects to conclude its acquisition deals worth between $32-$98 million for retail and distribution centres in Vietnam within the current quarter.