GS Retail picks Ho Chi Minh City as first overseas target

December 29, 2017 | 18:13

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GS Retail, South Korea’s biggest convenience store franchise, was reported by Korea Herald today as saying that it will open the first GS25 outlet in Ho Chi Minh City in mid-January 2018,.

GS Retail to launch the 1st convenience store in Ho Chi Minh City

The first GS25 outlet in Vientam is slated to be launched in January 2018 (Image source: jobnjoy)

Following the launch of the first outlet in January 2018, GS Retail plans to open four convenience stores in the city in the following month. The company plans to develop more than 2,500 GS25 outlets in Vietnam within 10 years.

In July, GS Retail inked a deal with SonKim Group to establish a joint venture running the convenience store brand GS25 in Vietnam. GS Retail will invest 10 per cent in the company, while Sonkim Group will own 70 per cent.

Under the agreement, GS Retail will offer trademark rights, skills, and knowhow on convenience store chain management. In return, the joint venture will pay GS Retail royalties and dividend tantamount to the 30 per cent interest.

The venture marks GS25’s first move to expand overseas. GS Retail expects that its presence in Vietnam will become a stepping stone for its overseas expansion in China and Cambodia.

According to GS Retail, the convenience store business is highly likely to succeed in Vietnam, thanks to the country’s rising consumer demand and large population of people under the age of 35.

7-Eleven sees success in Vietnam after failure in Indonesia?

After 7-Eleven’s initial success in the Vietnamese market, people are still questioning its long-term achievements as competition among different brands of convenience stores in Vietnam is getting more intense, and especially after 7-Eleven’s failure in Indonesia.

Vietnam convenience stores enjoy boom

Convenience stores and minimarts have become increasingly popular in the country, with more than one third of households shopping there regularly, according to some analysts’ estimates.

Japanese firm to open Mini-mart in Vietnam

G7Mart, an affiliate of coffee producer Trung Nguyen Corporation, on December 11 made an agreement with the major Japanese retailer Ministop to develop a chain of convenience stores in Vietnam in May 2011.

By By Thanh Van

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