THACO to expand Emart hypermarket system in Vietnam
17:53 | 01/06/2021 Print Article
After acquiring the Emart hypermarket system, Truong Hai Auto Corporation (THACO) is planning to expand the chain to 3-4 hypermarkets by 2022 and to 11 points of sale by 2025.
|THACO expects to expand the chain to 3-4 hypermarkets by 2022 and to 11 points of sale by 2025 |
At its online shareholders' meeting on May 31, THACO said it has reached a formal agreement with Emart Inc. and expects to complete the final stages of the deal in mid-June.
After the deal is completed, THACO will develop the detailed design of the stores and prepare for the efficient operation of the Emart hypermarket business.
In 2021, the Emart hypermarket system expects to reach more than VND1.8 trillion ($78.34 million) in revenue, an increase of about 10 per cent compared to 2020.
Tran Ba Duong, chairman of THACO, said that the hypermarkets developed by the domestic automaker will incorporate facilities like showrooms, food courts, conference centres, and wedding receptions, even a place where customers can view cars and experience vehicle maintenance.
According to Duong, THACO wants to create a chain of low-cost hypermarkets to suit the wallets and taste of Vietnamese people. He added that the one-stop hypermarkets of THACO would create greater conveniences for customers and that low-cost hypermarkets are the upcoming trend, especially in provincial markets.
Meanwhile, Nguyen Hung Minh, vice chairman of the Board of Directors revealed that the company signed an agreement to acquire 100 per cent of the capital of Emart Vietnam Co., Ltd., including the supermarket of Emart Phan Van Tri in Go Vap district, Ho Chi Minh City, as well as other supermarket projects being developed in Vietnam.
Moreover, the two sides signed a franchise agreement and Emart Inc. granted THACO exclusive commercial rights to its supermarket model for a period of nine years. Additionally, THACO will distribute Emart's Nobrand private label products in the Vietnamese market.