Supermarkets Chains Expand in Vietnam

The opening of a new Co-op Mart in the central Binh Thuan province is a part of the strategy by Saigon Co.op, the top supermarket chain in Vietnam to emerge as one of the top 500 retailers in the Asia Pacific region by 2010.

The news published on Thanhnien News reveals that the VND65 billion (US$4.1 million) outlets in the coastal city of Phan Thiet marked the 21st store for the chain.

More than 20,000 items are stocked in this outlet of which the greater majority comes from domestic producers specializing in consumer goods, fashion wear, electronic home appliances and food. FreshPlaza news reported Nguyen Ngoc Hoa, general director of Saigon Co.op stating that the operators has plans for a total of 30 branches before the year end.

Local domestic demand is credited with the success of supermarkets in Vietnam. Behind their popularity is the variety of imported products that customers are able to choose from, in the setting of a premium quality-shopping environment.

Another finding was that shopping practices in regard to the purchase of fresh produce in traditional markets along with the proximity and affordability of these outlets prove to be an obstacle to supermarket development. Major advances have been made by supermarkets in the sales of processed food and non-food products.

Youth is yet another key factor driving supermarkets in their quest for superior quality. With over 60% of Vietnam's population being less than 30 years of age, youth makes up a powerful new consumer force.

As per the RNCOS research report "Vietnam Retail Industry Analysis", Vietnam's domestic producers desire more sales of their products through supermarkets and trade centers, as the supermarkets tend to do their transactions in large volumes. Business continues to improve with the stores maintaining better records and being easier to deal with, better display of products, which works to the advantage of the brand image. Thanks to this approach by local producers, retailers have the opportunity to implement their supermarket plans in Vietnam.

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