French supermarket group Auchan Retail plans to withdraw from the Vietnamese market by selling its loss-making business.
|Auchan leaves Vietnam due to fierce competition in the retail market |
Earlier on Wednesday, Auchan Retail CEO Edgar Bonte told Les Echos that the group had decided to sell its 18 stores in Vietnam. These Vietnam outlets currently generate a revenue of EUR45 million ($50.4 million).
As reported by Reuter, the French retailer had said in March that it was conducting a review of its loss-making markets, such as Italy and Vietnam where it has faced tough market conditions. The exit from Vietnam follows Auchan’s deal earlier this week to sell almost all of the activities of its loss-making Auchan Retail Italia arm to Conad, the Italian co-operative retail group.
As reported by Le Monde, Auchan Retail will leave Vietnam before the summer, where it is the last Western distributor since the departure of Casino in 2016. The announcement was made in Tuesday morning.
“We launched it four years ago and we have not found the economic model matching the Vietnamese market,” said an internal source.
Auchan started developing its first supermarket chain in Vietnam in 2015. As of present, the chain has 18 supermarkets in Hanoi, Ho Chi Minh City, and Tay Ninh.