VietNamNet Bridge - Parkson, the Malaysian department store chain, was once compared to a haughty lady who was choosy in cooperating with partners. However, the lady has gone downhill.

Parkson’s golden age

Ten years ago, Parkson Saigon Tourist Plaza was known as the most luxurious shopping center in HCMC. It was difficult to get the right to open stalls at Parkson because retailers had to meet a lot of requirements.

Parkson, the Malaysian department store chain, was once compared to a haughty lady who was choosy in cooperating with partners. However, the lady has gone downhill.

Sometimes, in order to obtain stalls in advantageous positions at Parkson, retailers had to accept severe conditions. For example, to get a position at Parkson Saigon Tourist Plaza or Parkson Hung Vuong and Parkson Viettower Hanoi, owners would have to lease stalls at two other less crowded centers as well.

Despite the strict requirements, there were always many retailers who had to queue to register their names with Parkson. Some retailers reportedly had to spend money to buy products to obtain the minimum revenue they had committed to, or they would be dislodged from Parkson.

Heyday is over

In 2004, Vincom opened the first shopping mall in Hanoi. Unlike the revenue sharing model applied by Parkson, Vincom fixed the monthly leasing fee retailers have to pay.

However, at that time, Parkson disregarded the rival. Always obtaining high revenue, Parkson could not imagine that it would go downhill one day. The giant only began recognizing the appearance of Vincom when it opened Vincom B shopping mall in HCMC, located in a very advantageous position. However, it was too late.

In 2011-2012, Parkson opened Parkson Landmark Hanoi which closed in January 2015 after a lot of problems. This was the most unsuccessful center of Parkson which had unsatisfactory business results during its operation.

In the next move, Parkson closed Parkson Paragon in district 7, HCMC and decided to close Parkson Viettower Hanoi on December 15, 2016.

The business performance at Parkson Saigon Tourist Plaza has been going badly. Some cosmetics brands have closed their stalls on the ground floor, which brings the highest revenue and has nearly all famous perfume brands.

What are Parkson’s rivals doing?

Vincom has two shopping malls, which like Parkson’s, focus on fashion and cosmetics. 

Aeon, with professional management, has set up four shopping centers in Vietnam which combine a shopping mall, food court and hypermarket with a wide range of products.

The Lotte Shopping Center has set up a big center in HCMC after opening a center in Hanoi, which has been operating very well.


Kim Chi