Covid-19 resets operational mode of VN retail market

Revenue from e-commerce has increased rapidly during Covid-19, but many traditional retailers have had to give back business premises to landlords.

Online sales on the ris

The General Statistics Office (GSO) reported that retail revenue of accommodation and catering, and travel sectors decreased by 9.6 percent and 27.8 percent, respectively, in Q1 2020 compared with the same period last year

Covid-19 resets operational mode of VN retail market



The number of shoppers at shopping centers in HCM City and Hanoi, according to CBRE Vietnam, has dropped by 80 percent.

CBRE Vietnam predicted that if the epidemic can be contained in Q2, the vacancy rate in the central areas would be stable until the end of the year, while the rate in non-central areas would increase slightly by 1-2 percentage points.

If the epidemic lasts until September, the vacancy rates would increase in both areas, with the rate in non-central areas surging by 5-7 percentage points. The future supply in HCM City is predicted to drop by 76 percent and it may happen that there will be no new project in Hanoi.

The retail revenue decrease turns out to be a leverage for e-commerce and online shopping businesses to grow.

Of the biggest players in the e-commerce market, Tiki has seen the highest growth rate with a record high 4,000 orders per minute. SpeedL and Saigon Co-op see geometric growth rates. Grab has activated a new platform ‘GrabMart’ to serve the food online shopping demand.

Of the biggest players in the e-commerce market, Tiki has seen the highest growth rate with a record high 4,000 orders per minute. SpeedL and Saigon Co-op see geometric growth rates. Grab has activated a new platform ‘GrabMart’ to serve the food online shopping demand.

 


In Asia Pacific, omni-channel and online retail have been operating well during the epidemic. Consumer goods and cosmetics to luxurious products such as cars and museum excursion services all can be provided online.

Shop owners give back retail premises

The giving back of retail premises to landlords has yet to become common because tenants enjoyed rent reduction during the social distancing time.

However, analysts affirmed that the phenomenon has become more common. The businesses giving back retail premises are small ones that cannot maintain operation. They are mostly owners of restaurants, eateries and beer clubs.

Income from retail lease on the decrease

Though the social distancing policy has been loosened since late April, the business still has not returned to normal.

The revenue is predicted to fall by 90-100 percent in April in comparison with the same period last year and by 60-70 percent compared with March.

The stagnant business performance has forced landlords to cut rent to support businesses and assist them to overcome difficulties.

In March, when the government closed entertainment facilities, landlords offered a rent cut of 10-30 percent. In April, many landlords accepted a 50-100 percent cut and offered more flexible deposit and payment methods.

Kim Chi 

Giant retailers hit hard in Covid-19 because of rapid network expansion

Giant retailers hit hard in Covid-19 because of rapid network expansion

Their network expansion strategy in normal conditions offers great advantages to retailers, but it has put a burden on them during the Covid-19 crisis.

Vietnamese businesses led retailers’ game in 2019

Vietnamese businesses led retailers’ game in 2019

Many M&A deals in the retail market were made in 2019, but unlike previous years, Vietnamese groups ‘conducted the choir’.

 
 

Other News

.
BUSINESS NEWS HEADLINES MAY 23
BUSINESS NEWS HEADLINES MAY 23
BUSINESSicon  23/05/2020 

Hanoi drafts FDI attraction strategy in next decade to boost productivity

Weak growth outlook to spur further monetary easing in Vietnam: Fitch Solutions
Weak growth outlook to spur further monetary easing in Vietnam: Fitch Solutions
BUSINESSicon  22/05/2020 

Given the weak economic outlook in Vietnam, Fitch Solutions expects further easing measures to be applied over the rest of 2020 as the country is still targeting real gross domestic product (GDP) growth above 5%.

Many hotels in HCMC priced too high for sale
Many hotels in HCMC priced too high for sale
BUSINESSicon  22/05/2020 

Many hotel owners in HCMC are putting their properties on sale due to the tourism decline inflicted by the coronavirus pandemic but at very high prices.

Agribusinesses rocked by twin negative impacts
Agribusinesses rocked by twin negative impacts
BUSINESSicon  22/05/2020 

In spite of several highlights, the agricultural picture remains gloomy due to twin blows of climate change and coronavirus.

EVFTA offers opportunities to Vietnam to diversify markets
EVFTA offers opportunities to Vietnam to diversify markets
BUSINESSicon  22/05/2020 

Analysts say that Vietnam will be able to ease reliance on some trade partners because of the EVFTA.

Online food purchases predicted to rule the roost post-pandemic
Online food purchases predicted to rule the roost post-pandemic
BUSINESSicon  22/05/2020 

The online food and grocery delivery segment has gained remarkable momentum after multiple platforms launched services for those stuck at home during social distancing.

Vietnam set to become shelter for foreign real estate investment post-COVID-19
Vietnam set to become shelter for foreign real estate investment post-COVID-19
BUSINESSicon  22/05/2020 

Big companies like Apple, Nintendo, and Samsung and their supplier have switched out to limit damage.

Telecom industry expects high growth in the next five years
Telecom industry expects high growth in the next five years
BUSINESSicon  22/05/2020 

Five sectors of telecoms, information and technology, clean agriculture, clean technologies, retail, healthcare and pharmaceuticals have potential for high growth in the next three years.

Repatriated citizens: high-quality human resources for post-Covid-19
Repatriated citizens: high-quality human resources for post-Covid-19
BUSINESSicon  22/05/2020 

The number of repatriated citizens in the post-Covid-19 period is expected to increase, which will put pressure on the labor force and social security.

Outstanding loans of twelve inefficient projects amount VND21 trillion
Outstanding loans of twelve inefficient projects amount VND21 trillion
BUSINESSicon  22/05/2020 

The outstanding loans of twelve inefficient projects under the Ministry of Industry and Trade totalled US$905 million as of the end of 2019, most were overdue, according to the Government’s report to the National Assembly.

Panasonic to move Thai-based production to Vietnam
Panasonic to move Thai-based production to Vietnam
BUSINESSicon  22/05/2020 

Japanese appliance-maker Panasonic on May 21 said that next year it will move its Thai-based production of refrigerators and washing machines to Vietnam, laying off some 800 workers.

Local air-conditioner brands join race for market share
Local air-conditioner brands join race for market share
BUSINESSicon  22/05/2020 

Vietnamese air conditioner manufacturers are increasingly using sophisticated technologies as they jostle for market share in a competitive market.

BUSINESS NEWS HEADLINES MAY 22
BUSINESS NEWS HEADLINES MAY 22
BUSINESSicon  22/05/2020 

Casinos still lack popularity in Vietnam

Shrimp exporters see bright future despite Covid-19
Shrimp exporters see bright future despite Covid-19
BUSINESSicon  22/05/2020 

Vietnam’s shrimp exportsin Q1 had export turnover of $660 million, a 2 percent increase compared with the same period last year, according to the General Department of Customs (GDC).

Vietnamese businesses ready to be connected with “avenue” EVFTA
Vietnamese businesses ready to be connected with “avenue” EVFTA
BUSINESSicon  22/05/2020 

Economic cooperation between Vietnam and the European Union (EU) is about to turn a new page in history as the Vietnamese National Assembly is moving very close to ratifying the EU-Vietnam Free Trade Agreement (EVFTA).

Optimising the recovery route ahead for Vietnam as a whole
Optimising the recovery route ahead for Vietnam as a whole
BUSINESSicon  21/05/2020 

As the old saying goes, “What does not break you makes you stronger.” This is so true for Vietnam, not only throughout its rich history but also in the current context.

A repeat of the 2011-2013 real estate crisis?
A repeat of the 2011-2013 real estate crisis?
BUSINESSicon  22/05/2020 

With purchasing power dropping dramatically and liquidity becoming alarminging weak, the real estate market is witnessing a repeat of the 2011-2013 crisis.

P/B, P/E ratios at five-year low, banks should be good options
P/B, P/E ratios at five-year low, banks should be good options
BUSINESSicon  21/05/2020 

With average price-to-earnings (P/E) and price-to-book (P/B) ratios at a five-year low, bank stocks are among the good options available for investors right now, analysts said.

IPs mushroom as Vietnam seeks to grab post-pandemic opportunities
IPs mushroom as Vietnam seeks to grab post-pandemic opportunities
BUSINESSicon  21/05/2020 

This month ground was broken for Viet Phat Industrial Park, one of the largest in the country, in Long An Province.

E-wallet companies spend big money to beat rivals
E-wallet companies spend big money to beat rivals
BUSINESSicon  22/05/2020 

‘Bleeding money’ is the strategy that all the three biggest players – MoMo, Moca and ZaloPay – have been using to gain part of e-wallet market share.

 
 
 
Leave your comment on an article

OR QUICK LOGIN