Mobile World closes nearly 150 stores in two months

In October and November, the retail chains The Gioi Di Dong , Dien May Xanh and TopZone closed nearly 150 stores, the highest number ever, for comprehensive restructuring.

The above information is mentioned in the business results report of Mobile World Investment Corporation (MWG) just announced. By the end of November, the company still operated 1,100 Mobile World and Topzone stores, 2,210 Dien May Xanh stores.

In December, MWG continued to close some stores that were inefficient in terms of revenue and profit to stabilize operations, preparing for the peak sales season during the Lunar New Year. According to the plan, this enterprise could close a total of 200 stores in the last three months of the year.

At the previous investor meeting, Chairman Nguyen Duc Tai said that with the weak and prolonged market purchasing power, the company could not maintain inefficient divisions. However, he affirmed that closing stores would not affect revenue, but would only "transfer from one store to another". In addition, the cost of premises, staff, electricity and water were cut, helping the company improve profits.

MWG has recently undergone a comprehensive restructuring to streamline operations. The company expects to increase revenue, market share and improve profits next year.

Not only in the network of points of sale, the restructuring is also carried out by this company in the warehouse, logistics departments, and business management. The company focuses on keeping core activities, chains, stores and product lines that create value for the business in the present or near future.

"We are willing to innovate and change the way we do business to meet the real needs of customers in the new business context," the report stated.

Regarding business results, total revenue for 11 months reached nearly 108,000 billion VND, down 13% compared to the same period. This enterprise only has one month left at the end of the year to complete 20% of the previously set revenue plan of 135,000 billion VND.

Among the chains, the "backbone" segments The Gioi Di Dong and Dien May Xanh continued to record a 21% decrease in revenue compared to the same period last year. In November alone, the revenue of these two chains also decreased compared to October due to the cooling demand for iPhones after the peak of the launch. In addition, according to the management board, this is a low season for the electronics industry.

Bach Hoa Xanh is still a rare bright spot. Revenue for the first 11 months of this year reached VND28,400 billion, up 16% over the same period in 2022. Average revenue per store reached VND1.75 billion - VND250 million away from the company's estimated profit.

This food and essential consumer goods retail chain completed its review of closing its points of sale in November. The management board said Bach Hoa Xanh will maintain 1,697 stores from December. Since completely stopping its plan to expand its points of sale and focusing on "getting back what was lost" from 2022, the chain has closed more than 400 stores.

Siddhartha

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