Auchan’s sale of 18 supermarkets leaves questions about new owner

It is still unclear who will take over the Auchan chain in Vietnam, though the announcement about the departure was made many days ago.

A question has been raised why Auchan has closed most of its supermarkets in Vietnam, though negotiations and transfer process have not finished.

Auchan’s sale of 18 supermarkets leaves questions about new owner

On June 3, Auchan Vietnam officially announced the closure of 15 out of 18 supermarkets in HCMC, Tay Ninh and Hanoi.

After five years of presence in Vietnam, only three supermarkets in HCMC will stay, including two in district 7 – Auchan Crescent Mall and Auchan Era, and the other in Tan Binh District – Auchan Hoang Van Thu.

However, Phap Luat TP HCM quoted its sources as reporting that Auchan Hoang Van Thu would leave the market in October.

After five years of presence in Vietnam, only three supermarkets in HCMC will stay, including two in district 7 – Auchan Crescent Mall and Auchan Era, and the other in Tan Binh District – Auchan Hoang Van Thu.

Vu Thi Kim Nuong of Auchan Vietnam told the local press that Auchan and partners are still under negotiations about the transfer.

A branding expert said in general brand owners only make announcements about the departure after they transfer all their assets (retail premises, goods and staff) to new owners. If doing this, they can sell for better prices, while the transfer will be smooth.

The transfer of Big C from French Casino Group to Thai Central Group, worth $1.05 billion, is an example.

However, Auchan has gone another way. It reported losses, liquidated goods and closed down 15 of 18 supermarkets though the negotiations have not yet finished, and the new owner has not been found.

 

Explaining this, Nuong said if Auchan Vietnam maintains the operation of supermarkets until the negotiations finish, which may take several months, Auchan may have to incur bigger losses.

However, Vietnamese businesses still said that the actions taken by Auchan were ‘abnormal’.

“Leaders of Auchan in France said Auchan’s retail in Italy will be transferred to Conad, an Italian retail group. Why doesn’t it do the same thing with its supermarkets in Vietnam?” a businessman questioned.

“Is this because Auchan only wants to sell its brand, not its assets?” he said.

He went on to say that after the inventory liquidation, Auchan now only has the brand in Vietnam. This means that f a retailer buys Auchan, it will only buy the Auchan brand.

Tran Phuoc Tuan, HR Director of Auchan, confirmed that the liquidation before transfer aims to ease the financial burden. However, he oukdnot say if they were selling the brand name only.

Auchan arrived in Vietnam in 2015 and employs 1,000 workers. The French retail chain once stated it would open 300 supermarkets in Vietnam within four years.

Thuy An

Auchan shocked at sales riot

Auchan shocked at sales riot

A representative from Supermarket giant Auchan Vietnam expressed shock at what they described as shameful behaviour customers at a recent sale at its stores.

Auchan’s three supermarkets in HCMC remain operational

Auchan’s three supermarkets in HCMC remain operational

French supermarket group Auchan Retail will temporarily keep its three HCMC-based supermarkets in service while 15 others will be shut down nationwide, said Auchan’s communications director.  

 
 

Other News

.
Top 10 most valuable brands worth US$8.1 billion
Top 10 most valuable brands worth US$8.1 billion
BUSINESSicon  07/08/2020 

The top 10 most valuable brands in Viet Nam 2020 are worth US$8.1 billion, increasing by 17 per cent from last year and accounting for 30 per cent of the list’s total value, according to Forbes Viet Nam magazine.

Vietnam Airlines plans to sell nine planes due to financial woes
Vietnam Airlines plans to sell nine planes due to financial woes
BUSINESSicon  06/08/2020 

Vietnam Airlines is planning to sell nine A321CEO planes to optimize its fleet and improve its cash flow, as the national flag carrier’s revenue has dropped sharply due to the Covid-19 pandemic.

Vietnam – one of the best long-term growth stories in Asia
Vietnam – one of the best long-term growth stories in Asia
BUSINESSicon  07/08/2020 

Vietnam is one of the best long-term growth stories in Asia and is one of the most preferred frontier markets, according to HSBC.

Maximum $130,700 fine for listing violations: Draft decree
Maximum $130,700 fine for listing violations: Draft decree
BUSINESSicon  06/08/2020 

Public companies may receive a penalty of VND2-3 billion ($87,120-$130,700) for falsifying share listing and trading documents under a proposal from the Ministry of Finance.

Singaporean business surges ahead
Singaporean business surges ahead
BUSINESSicon  07/08/2020 

Singaporean business and investment in Vietnam has increased significantly over the decades, thus greatly contributing to strengthening economic bilateral ties.

Furthering developmental ties with dynamic Singapore
Furthering developmental ties with dynamic Singapore
BUSINESSicon  06/08/2020 

Vietnam and Singapore are witnessing their heyday in bilateral and multifaceted cooperation.

Wide impacts to be made with new law changes
Wide impacts to be made with new law changes
BUSINESSicon  06/08/2020 

Effective in 2021, the amended laws on Enterprises, Investment, and Public-Private Partnership are expected to entail breakthrough changes to Vietnam’s business and investment landscape in the coming time, 

Decisive actions to achieve goals
Decisive actions to achieve goals
BUSINESSicon  06/08/2020 

The Ministry of Planning and Investment is currently working on possible scenarios for the upcoming period amid the ongoing developments of the global health crisis.

Millenium to develop $15 billion LNG project in Khanh Hoa
Millenium to develop $15 billion LNG project in Khanh Hoa
BUSINESSicon  06/08/2020 

If the $15 billion LNG project of Millenium Group is approved, it will contribute to making the Nam Van Phong area the largest LNG centre in Southeast Asia.

Rebound likely despite bumpy roads
Rebound likely despite bumpy roads
BUSINESSicon  06/08/2020 

Despite a serious dip in local production caused by the health crisis, Vietnam is expected to be one of the fastest-growing nations worldwide this year, with the economy forecast to stay among the few nations with positive growth.

Unique advantages can pull Vietnam out of uncertainty
Unique advantages can pull Vietnam out of uncertainty
BUSINESSicon  06/08/2020 

In life, economic and health gains are not always equal. This is true for individuals and for countries. While Vietnam has managed to contain the pandemic so far, its economy has been hurt in recent months. 

Hanoi’s Old Quarter businesses bear brunt of COVID-19 impact
Hanoi’s Old Quarter businesses bear brunt of COVID-19 impact
BUSINESSicon  06/08/2020 

The second wave of the COVID-19 epidemic to hit Vietnam has continued to deal a devastating blow to small businesses, travel agencies, and tourist accommodations in the Old Quarter of Hanoi due to the suspension of operations.

Container handling charge increases proposed to attract investment in seaports
Container handling charge increases proposed to attract investment in seaports
BUSINESSicon  06/08/2020 

Container loading and unloading service charges should be increased to approach the regional level so investors would not feel hesitant when pouring money into developing seaports.

Policies encourage automakers to assemble cars in Vietnam
Policies encourage automakers to assemble cars in Vietnam
BUSINESSicon  06/08/2020 

 Several automakers are considering assembling their best-selling models in Viet Nam due to the Government’s policy of zero import tariffs on components and a 50 per cent reduction in registration fees.

Thai firms acquire wind power farm in Ninh Thuan
Thai firms acquire wind power farm in Ninh Thuan
BUSINESSicon  06/08/2020 

Thailand’s Banpu and its power business arm Banpu Power (BPP) have joined forces to acquire El Wind Mui Dinh, an onshore wind farm in the south-central province of Ninh Thuan, in a deal worth $66 million.

EVFTA smooths the way for Vietnamese farm produce
EVFTA smooths the way for Vietnamese farm produce
BUSINESSicon  06/08/2020 

The EU-Vietnam Free Trade Agreement, at its core, aims to liberalise both tariff and non-tariff barriers on key exports of both sides over a period of 10 years.

Mountainous areas and islands need investment
Mountainous areas and islands need investment
BUSINESSicon  07/08/2020 

PhD Doctor Le Quoc Phuong, former deputy director for the Information Centre for Industry and Trade, under the Ministry of Trade, talks on key requirements in trade development in mountainous areas and islands.

Vietnam receives positive view in global exports as EVFTA takes effect: report
Vietnam receives positive view in global exports as EVFTA takes effect: report
BUSINESSicon  05/08/2020 

Vietnam is expected to continue growing its share of global exports despite decline amid the resurgence in the COVID-19 pandemic after three months of no local transmissions, according to an HSBC report.

Local banks are racing to catch digitisation trend: expert
Local banks are racing to catch digitisation trend: expert
BUSINESSicon  05/08/2020 

Vietnam has seen a digital wave in the finance-banking industry, with many lenders investing significantly in digitisation, experts have said.

Experts call on Vietnamese government to aid businesses again
Experts call on Vietnamese government to aid businesses again
BUSINESSicon  05/08/2020 

Amid the new COVID-19 outbreak, experts have suggested the Government offer another credit support package to help enterprises, especially large businesses in key areas.

 
 
 
Leave your comment on an article

OR QUICK LOGIN