Retail major MWG expects 50% online sales growth

By Trang Nguyen
Mon, August 22, 2022 | 4:23 pm GTM+7

With its Omni-channel retail strategy, Mobile World Investment Corporation (MWG) expects online sales to continue growing by 50% in 2022 and increase its contribution in total revenue to 15%.

Omni-channel retailing is a new concept in which all sales and interaction channels are considered together. MWG, listed on the Ho Chi Minh Stock Exchange, is a company active in the retail sale industry, primarily computer and electronics retailing.

The Gioi Di Dong, a mobile phone retail chain, and Dien May Xanh, a chain specialising in the retail sale of consumer electronic products and household appliances, will still be the main sources of cash flow for the company, estimated to account for 75-80% of total revenue, according to the company.

Bach Hoa Xanh is a chain of supermarkets and grocery stores. Photo courtesy of MWG.

Bach Hoa Xanh is a chain of supermarkets and grocery stores. Photo courtesy of MWG.

This year, MWG said it would open new Dien May Xanh, Supermini and Topzone outlets; expand store size or convert from The Gioi Di Dong to Dien May Xanh for stores with high revenue and potential; trade new products and services to increase revenue for existing stores; boost revenue for Bluetronics to break even; and at the same time, venture into the Indonesian market.

Supermini stores provide about 60% of the list of basic telephone and electronic products on an area of 120-150 square meters. Topzone stores sell Apple products only. Bluetronics is the largest electronics retail chain in Cambodia.

Meanwhile, the company would suspend new openings for Bach Hoa Xanh, a chain of supermarkets and grocery stores, to strengthen its operating platform before expanding from 2023. MWG expects Bach Hoa Xanh to contribute 20-25% of the company's total sales.

Bach Hoa Xanh recorded revenue of VND2,350 billion ($100.4 million) in July, down 45% from the peak of the same period last year. In the first seven months of the year, Bach Hoa Xanh reaped a revenue of VND15,200 billion ($649 million), contributing more than 18.6% to MWG's total revenue.

Bach Hoa Xanh has closed a total 400 stores compared to the beginning of the year and completed changing the new layout for almost all existing stores.

As of the end of July, the company has 1,735 Bach Hoa Xanh stores, with an average revenue at each store hitting about VND1.3 billion ($55,520).

According to MWG chairman Nguyen Duc Tai, the Bach Hoa Xanh chain would be profitable in the fourth quarter this year.

In the pharmaceutical retail segment, the gross profit margin of 365 An Khang drug stores in the first half of the year remained above 20%.

In 2022, MWG sets a revenue target and after-tax profit plan of VND140,000 billion ($5.98 billion) and VND6,350 billion ($271.2 million), respectively.

On the Ho Chi Minh Stock Exchange, the MWG shares price hit VND66,500 ($2.84) per unit at the closing session on August 22.

Comments (0)
  • Read More
Vietnam welcomes 1.87 mln foreigners, South Koreans in the lead

Vietnam welcomes 1.87 mln foreigners, South Koreans in the lead

Vietnam welcomed 1.87 million foreign visitors in the first nine months of the year, up 16.4 times year-on-year, with South Korea and the U.S. leading the pack.

Travel - Sat, October 1, 2022 | 8:26 pm GTM+7

US firm Molex expands Vietnam facility with solar panel installation

US firm Molex expands Vietnam facility with solar panel installation

Molex, a U.S. manufacturer of electronic, electrical and fiber optic connectivity systems, has expanded its manufacturing facility in Hanoi with solar panel installation.

Industries - Sat, October 1, 2022 | 6:46 pm GTM+7

EVN, Trungnam Group hold talks on solutions for solar power usage deadlock

EVN, Trungnam Group hold talks on solutions for solar power usage deadlock

State-owned Vietnam Electricity (EVN) has asked Trungnam Group to put the 172-megawatt capacity portion without a pricing mechanism of its 450 MW solar farm in Ninh Thuan into the competitive power generation market.

Energy - Sat, October 1, 2022 | 3:54 pm GTM+7

Danish firm Spectre opens third Vietnam factory in An Giang

Danish firm Spectre opens third Vietnam factory in An Giang

Spectre, a Danish maker of functional garments for outdoor sports brands, started operating its $17 million factory in An Giang province Friday, the company’s third in Vietnam.

Industries - Sat, October 1, 2022 | 3:06 pm GTM+7

Foreign firm accountant gets death sentence in $9.6 mln corruption case

Foreign firm accountant gets death sentence in $9.6 mln corruption case

A Dong Thap province court on Friday handed a death sentence to Nguyen Trung Thanh, chief accountant of Filipino-invested Pilmico Vietnam, on corruption charges.

Society - Sat, October 1, 2022 | 2:43 pm GTM+7

Vietnam’s nation brand valued at $431 billion

Vietnam’s nation brand valued at $431 billion

Vietnam has seen the third biggest brand value gain over the course of the pandemic in absolute terms, up $184 billion year-on-year to $431 billion in 2022, says London-based Brand Finance.

Economy - Sat, October 1, 2022 | 11:22 am GTM+7

Jail term reduced to 3 years for former deputy health minister

Jail term reduced to 3 years for former deputy health minister

An appeal court in Hanoi has reduced the jail term for former deputy minister of health Truong Quoc Cuong to three years, from the four years ruled by an instance court in May.

Society - Sat, October 1, 2022 | 11:05 am GTM+7

Fever cools, townhouse, villa segment turns lethargic in major cities

Fever cools, townhouse, villa segment turns lethargic in major cities

Liquidity in the townhouse and villa segment, once feverishly high in both Hanoi and Ho Chi Minh City, has been drying up in recent months.

Real Estate - Sat, October 1, 2022 | 9:50 am GTM+7

AES gets ministerial nod for 2,250 MW LNG power project in Binh Thuan

AES gets ministerial nod for 2,250 MW LNG power project in Binh Thuan

American energy corporation AES has received in-principle approval from the Ministry of Industry and Trade for its VND50,432 billion ($2.11 billion) Son My 2 LNG-to-power project in the south-central province of Binh Thuan.

Energy - Fri, September 30, 2022 | 9:24 pm GTM+7

Coro Energy operates pilot rooftop solar power project in Vietnam

Coro Energy operates pilot rooftop solar power project in Vietnam

Coro Energy has completed commissioning of its Vietnam rooftop solar pilot project, the UK-based energy firm announced Friday.

Energy - Fri, September 30, 2022 | 6:59 pm GTM+7

VN-Index pulls one back after five losing sessions

VN-Index pulls one back after five losing sessions

Vietnam’s benchmark VN-Index reversed a consecutive five session decline with a six-point gain Friday to close at 1,132 points.

Finance - Fri, September 30, 2022 | 6:30 pm GTM+7

Vietnam’s GDP growth to keep driving southern industrial property market: report

Vietnam’s GDP growth to keep driving southern industrial property market: report

The industrial and logistics market in Ho Chi Minh City, Dong Nai, Binh Duong, Long An, and Ba Ria-Vung Tau will continue to grow in 2022-2023 thanks to Vietnam’s resilient economic expansion, according to Cushman and Wakefield.

Real Estate - Fri, September 30, 2022 | 3:32 pm GTM+7

Vietnam needs bonded warehouses for US cotton imports

Vietnam needs bonded warehouses for US cotton imports

Building a Vietnam bonded warehouse for U.S. cotton would benefit both countries, Vietnam Textile and Apparel Association (Vinatas) chairman Vu Duc Giang said Friday.

Industries - Fri, September 30, 2022 | 3:19 pm GTM+7

Thai giant Central Retail eyes mall investment in Binh Thuan

Thai giant Central Retail eyes mall investment in Binh Thuan

Thailand's Central Retail is seeking opportunities to build malls and supermarkets in Binh Thuan province.

Industries - Fri, September 30, 2022 | 3:05 pm GTM+7

Vietnam Q3 unemployment lowest in 3 years

Vietnam Q3 unemployment lowest in 3 years

Vietnam's unemployment rate dropped 1.7 percentage points year-on-year to 2.28% in the third quarter, the lowest since 2020.

Economy - Fri, September 30, 2022 | 11:38 am GTM+7

Looking up HCMC’s highest high-end homes

Looking up HCMC’s highest high-end homes

Housing projects like The River Thu Thiem, Lumière Riverside, Grand Marina Saigon, and The Opera Residence are home to the most expensive penthouses in Ho Chi Minh City.

Real Estate - Fri, September 30, 2022 | 9:36 am GTM+7