Parkson closes fourth retail store in Vietnam

February 28, 2018 | 16:34

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The Vietnamese unit of Parkson Holding Berhad, the retail arm of Malaysian conglomerate Lion Group, will officially close Parkson Flemington, its second store in Ho Chi Minh City after eight years of operation due to massive operating losses.

parkson closes fourth retail store in vietnam

Parkson closes its fourth retail store in Vietnam

This will make the fourth store to be closed in Vietnam.

The Parkson retail chain in Vietnam is one of the Parkson Holdings Berhad units suffering the bleakest business results. Notably, in the financial year of 2017, Parkson Vietnam and Parkson Myanmar reported a revenue of VND600 billion ($26.2 million) only, decreasing 9 per cent on-year. The two units also reported a loss of VND29 billion.

In January 2015, they closed Parkson Landmark 72 in Keangnam Landmark Tower 72 in Hanoi and then in May, Parkson Paragon in Ho Chi Minh City. In addition, they closed Parkson Viet Tower or Parkson Thai Ha, the group’s second store in Hanoi after eight years of operation, citing unsatisfactory business results.

According to Tan Sri William H.J. Cheng, chairman of Parkson Holdings, the Vietnamese retail market is reaching saturation, proved by its negative business results as well as the withdrawal of numerous stores.

Entering Vietnam in 2005, Parkson Holdings Berhad became one of the leading retailers in Vietnam by building a chain of retail stores in Ho Chi Minh City, Hanoi, Haiphong, and Danang. However, the race for market share became heated as other massive retailers began joining. Since 2014, Parkson has yet to open any new stores in Vietnam, while its revenue is in an unstoppable plunge.

As a result, in January 2015, they closed Parkson Landmark 72 in Keangnam Landmark Tower 72 in Hanoi and then in May, Parkson Paragon in Ho Chi Minh City. In addition, they closed Parkson Viet Tower or Parkson Thai Ha, the group’s second store in Hanoi after eight years of operation, citing unsatisfactory business results.

At the moment, Parkson still has six stores in Vietnam. Four are located in Ho Chi Minh City, one in Haiphong, and one in Danang. Some of these stores also see tough competition from other retailers.

For example, Parkson Saigon Tourist Plaza in District 1 of Ho Chi Minh City had a Vincom Shopping Mall built right next to it, while Parkson Flemington in District 11 is located right next to a Lotte Mart.

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