Convenience Stores Thriving in Vietnam

Modern c-stores quickly replacing more traditional markets for younger, busier shoppers.

August 13, 2015

HO CHI MINH CITY – Vietnamese consumers are making their way from traditional outdoor markets into air-conditioned, brightly lit convenience stores, led in part by extensive foreign investment in the growing market.

Dinh Thi My Loan, chairwoman of the Association of Vietnam Retailers, told news sources that the rapid expansion of convenience stores takes place as part of a larger cultural and economic shift in which locals are seeing higher incomes, and thus creating a stronger demand for higher quality of goods and services, compared to a few years ago. These new consumers often opt for convenience stores instead of small grocery shops and traditional markets for their shopping.

According to a recent Nielsen report, consumers have noticeably shifted away from the country’s “wet markets” and traditional trade stores in recent years, with their share declining 5% and 17% respectively, in 2014 compared to 2012. Customers' visit frequency also decreased, according to the report. Meanwhile, the need for convenience stores continues to grow, especially in urban areas in Vietnam.

Convenience stores rose from 147 stores in 2012 to 348 in 2014, while mini-supermarkets increased from 863 outlets in 2012 to 1,452 in 2014. Nielsen attributed the growth in a large part to the increase of "time-poor and predominantly young shoppers" in the country.

Singaporean Shop&Go has opened 126 stores since its arrival in Vietnam in 2005, becoming the country’s leading convenience store chain. In February, Circle K opened its 100th outlet in Ho Chi Minh City, with plans to launch 150 convenience stores in Vietnam over the course of this year. And just last month, 7-Eleven announced plans to open its first location in the country in 2017, with continued expansion plans.

Closer to home, Vietnamese conglomerate Vingroup is expected to hire 10,000 employees to serve its expansion of supermarkets and convenience stores this year, as it launches about 360 convenience stores and 50 supermarkets.

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