French supermarket group Auchan Retail’s plans to sell its loss-making business in Vietnam are already drawing interest from potential buyers, Reuters reported.
Earlier on Wednesday, Auchan Retail CEO Edgar Bonte told newspaper Les Echos that the group had decided to sell its 18 stores in Vietnam. Those Vietnam outlets currently generate revenues of EUR45 million (US$50.4 million).
The exit from Vietnam follows Auchan’s deal earlier this week to sell almost all the activities of its loss-making Auchan Retail Italia arm to Conad, the Italian co-operative retail group.
Auchan Retail had said in March that it was conducting a review of its loss-making markets, such as Italy and Vietnam where it has faced tough business conditions.
Auchan was the last western retailer leaving Vietnam, according to Le Monde. In 2016, German Metro AG completed the sale of its Metro Cash & Carry to TCC Group and Big C Vietnam was acquired by Central Group from French’s Casino Group. Both buyers in these two deals are from Thailand.
Auchan made its first presence in Vietnam in 2015, and currently runs 18 supermarkets in Hanoi, Ho Chi Minh City and Tay Ninh, of which 13 are in Ho Chi Minh City, four in Hanoi and one in Tay Ninh.
A source told VnExpress a domestic retailer would acquire Auchan’s business in Vietnam, and the take-over process is scheduled to start in early June.
Vietnam’s retail market is considered to have huge potential for development but with fierce competition. Recently, the market witnessed the exit of several retailers such as Maximark, Fivimart or Shop&Go, which were all acquired by Vingroup. Hanoitimes