IFB Holdings Limited on August 22 denied reports that the company is entering into a partnership with Japan’s 7-Eleven to launch a convenient store chain in Vietnam in 2018.

Mr. Rachan (Butch) Reddy, the owner of IFB Holdings, told VET it is not associated with 7-Eleven in any way.

Japan's Nikkei Asian Review reported that IFB Holdings, the owner of The Coffee Bean & Tea Leaf and Subway in Vietnam, is to become a partner of the 7-Eleven’s master franchisor in Vietnam, Seven System Vietnam Company.

7-Eleven has expressed an intention to come to Vietnam. It was reported in the middle of last year that it had signed a master franchise agreement with Seven System Vietnam Company and plans to open some 1,000 outlets over the next decade.

Seven System Vietnam Company is located in District 1, Ho Chi Minh City, according to its business registration. Its shareholders consist of Mr. Nguyen Thanh Tu with 98 per cent and Ms. Tran Thi My Hang and Ms. Dong Thanh Vi with 1 per cent each.

The anticipated arrival of 7-Eleven will make Vietnam’s retail market even more competitive. The Japanese convenience store chain opens a new outlet somewhere around the world every two hours.

Convenience stores are becoming a common sight in Vietnam’s cities, according to market researchers Nielsen. With life moving at a fast pace and family sizes becoming smaller, it wrote in a June report, Vietnamese consumers crave convenience for everything, especially when choosing the stores where they shop.

Nearly six in ten shoppers said that store selection is highly influenced by convenient location. Furthermore, nearly five in ten mentioned organized store layout making it easier to shop as being another factor in their selection. 

When it comes to in-store services, nearly five in ten said they use banking services (56 per cent), fast food services (52 per cent), gasoline stations (52 per cent), postal services and coffee services (47 per cent), prepared food services (45 per cent), and pharmacy services (41 per cent).

“It’s becoming a way of life,” said Mr. Roberto Butragueño, Associate Director of Retail Services at Nielsen Vietnam. “Stores aren’t going to disappear any time soon, but they will undergo a dramatic transformation as e-commerce grows and shopper expectations change.”

“Retailers need to consider what role physical stores will play in their omni-channel strategy and how they can use them to strengthen their offerings and deliver value on each trip.”

VN Economic Times