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Masan Group wants to close a series of inefficient Vinmart, aiming to breakeven by the end of 2020

10:50 | 26/06/2020

Under the management of Masan, hundreds of VinMart+ convenience stores will be closed this year. Previously, Masan suffered a large loss in Q1 / 2020 due to the consolidation of VCM's business results (operating companies Vinmart and Vinmart +).

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masan group wants to close a series of inefficient vinmart aiming to breakeven by the end of 2020
Masan will shut down 150-300 VinMart+ convenience stores this year. (Photo: Vir)

Masan Group Joint Stock Company has just published the document of the Annual General Meeting of Shareholders in 2020. Accordingly, the net revenue plan for the coming year is in the range of VND 75,000-85,000 billion. Profit after tax planned for shareholders of the company is VND 1,000-3,000 billion.

According to documents submitted to the coming shareholders' meeting, Masan – which holds 83.74 per cent shares in Vincommerce the operator of VinMart+ convenience stores and VinMart supermarkets – will shut about 10 supermarkets and 150-300 inefficient stores.

Explaining the closure, Masan stated that this is a part of its expansion blueprint. Specifically, the group will accelerate investment in selected and efficient stores and release weak establishments to save operation costs. Additionally, Masan also announced the plan to launch 20-30 supermarkets and 300-500 convenience stores in the next time.

Moreover, Masan will also work with suppliers regarding terms of trade specified in contracts between the two sides, aiming to reach a common voice on putting the goods on th eshelves at market prices, reported by the vir.

masan group wants to close a series of inefficient vinmart aiming to breakeven by the end of 2020
A Vinmart supermarket in Ho Chi Minh City

Previously, when building a plan for 2020, the company planned to open 20-30 VinMart supermarkets and 300-500 VinMart + stores in appropriate locations, and would close up to 10 supermarkets and 150-300 inefficient stores. This means the company will focus on improving its efficiency, selective expansion stores.

As soon as the merger deal between Masan and Vincommerce went through late last year, Masan declared every VinMart+ store a sales point for its MeatDeli meat business. According to the document, Masan targets VND42 trillion ($1.83 billion) in revenue for Vincommerce, up 64 per cent on-year. Of this, VinMart and VinMart+ will occupy about a quarter of the total earnings.

The group also hopes to reduce losses for the establishments and even reach the breakeven point during 2020. The first quarter of this year saw Masan report a net deficit of VND216 billion ($9.4 million). This is its first loss over the past six years.

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