Thailand’s Central Retail reported a revenue of THB14.12 billion ($416.95 million) from its Vietnam operation in the first quarter of 2023, a 0.7% increase year-on-year, according to the retailer.
In the same period, Central Retail globally recorded a total revenue of THB59.03 billion ($1.74 billion), a 12.42% rise year-on-year. Thailand, its domestic market, contributed THB41.63 billion ($1.23 billion), or 70.5% of the total; followed by Vietnam with 23.9% and Italy with 5.55%.
In Vietnam, “food products” was the main revenue generator for Central Retail with THB12.11 billion ($357.43 million), an 8.6% growth year-on-year; followed by hardlines with THB1.98 billion ($58.58 million), a 30.2% decline; and fashion with THB32 million ($944,789), a 3% drop. Central Retail also earned a rental & services income of THB484 million ($14.29 million) in Vietnam in Q1/2023, a 41% surge year-on-year.
In Q1, Central Retail added one Nguyen Kim store to its hardline business in Vietnam. The food sector added one GO! hypermarket, totaling 38 units; and five units of Tops market, GO! store, and Lanchi store brands, totaling 38. For the property business, the retailer rebranded a Big C supermarket to open one more GO! mall, bringing the total number to 39.
Central Retail will pursue its growth in Vietnam by building on two successful models of GO! malls and GO! hypermarket, said CEO Yol Phokasub. For GO! supermarket, which offer fresh food and affordable fashion, the Thai giant plans to launch five or seven more this year, a significant addition to its current network of five branches.
Thailand’s Central Retail posted a revenue of THB236.245 billion ($6.79 billion) in 2022, up 21% year-on-year, of which the Vietnamese market accounted for 24%, according to a report for last year. With revenue in Vietnam rising 34% year-on-year in 2022, Central Retail said it secured the positions as the largest international retailer in Vietnam, as well as the top hypermarket and second lifestyle mall brand in the country, covering 40 out of 63 cities and provinces.
Looking at Vietnam’s promising future, Central Retail has announced investment plans totaling THB50 billion ($1.45 billion) to expand its network in Vietnam over the next five years. In particular, it is planning to open up to seven GO! mall establishments this year and enlarge its network to 57 localities in Vietnam, targeting sale revenue of THB150 billion ($4.31 billion) within five years.