Saigon currently has more than 1,800 convenience stores, total area over 270,000m2 of floor area, up 5.1% compared to the end of last year.
In the report on the real estate market in Ho Chi Minh City in the first quarter of 2018, Jones Lang LaSalle (JLL) Vietnam said that in the past three months, the growth rate of convenient stores in urban areas of more than 10 million people took place. Out full of positives and promises to continue to “storm” the rest of the year.
According to JLL’s statistics, as of the end of March 2018, Ho Chi Minh City has more than 1,800 convenience stores and mini supermarkets covering the inner and suburban areas. The total area of these shops reached 272,000 square meters2 floor of the whole city, up 5.1% over the previous quarter (ie December 2017). It is expected that convenience store chains hitting the market will continue to increase in the remaining quarters of 2018 due to the arrival of ambitious new players.
According to this unit, the race for coverage of convenience store brands in Ho Chi Minh City is becoming more and more fierce despite the cost of premises in this metropolitan area becoming increasingly expensive. and harder to find.
Convenience stores mainly using the premises are townhouses for rent on the ground floor or whole house (limited area compared to the amount of goods sold) or the podium of high-rise buildings with commercial features. high. The rental price of this type of premises is just as expensive as the premises in commercial centers, in terms of unit price per square meter.2.
JLL forecasts that, because the expansion campaign is at the stage of expanding its coverage area, increasing its presence not only in Ho Chi Minh City but also in many other large cities across the country, the number of convenience stores will constantly increasing strongly.
According to the new data released by the International Grocery Research Organization (IGD), Vietnam is expected to become the fastest growing convenience store market in Asia by 2021, ranked above Philippines and Indonesia.
International brands such as Family Mart from Japan, Circle K from the US, Shop & Go and B’s Mart from Southeast Asia dominate the market and account for nearly 70% of convenience stores today.
According to CBRE Vietnam, this market will have competition from domestic and international convenience stores because every player wants to gain more market share through opening a lot of convenience stores throughout the country. country.
This survey consultant unit said that Vinmart, a major convenience store brand in the country, is planning to open 3,000 more stores across Vietnam in the coming years. Recently, GS25, a Korean convenience store chain, entered the Vietnamese market and is looking to open more than 2,500 stores nationwide in the next 10 years. “This is a signal showing the heat of this market in 2018 and the following years”, CBRE said.
Savills Vietnam’s retail market report recently announced that as of the end of 2016, there is one convenience store for every 54,400 people in Vietnam. This data has now changed significantly due to the whirlwind of convenience stores that hit Ho Chi Minh City and many other provinces across the country over the past 12-24 months.
As for AT Kearney’s research, Vietnam is considered to be a country with a very suitable population age for convenience store chains, with 57% of its population under 35 years old. Therefore, in the coming time, many foreign retailers will attack the Vietnamese market.
* Source: Businessman +