VietNamNet Bridge - The continued closure of Parkson stores shows that the time of the department store may be over. Shopping malls are the growing tendency in large cities.


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The area of shopping malls has been expanding



The representative of a real estate consultancy and brokerage firm confirmed that Parkson is following necessary procedures to shut down its Cantavil store. 

If this occurs, Parkson will have three stores in Vietnam, all in HCM City, Parkson Hung Vuong, Parkson Saigon Tourist Plaza and Parkson CT Plaza. All three have small custom, including Saigon Tourist Plaza, which was once the most luxurious shopping center.

Parkson in Vietnam took losses in all four quarters of 2017, totaling VND60 billion, according to Parkson Retail Asia.

The shopping centers nearby, including Vincom Center and Takashimaya, are bustling.

The continued closure of Parkson stores shows that the time of the department store may be over. Shopping malls are the growing tendency in large cities.

The representative of a fashion brand revealed that the sales at Vincom Center Dong Khoi are the most satisfactory, while sales at Parkson Saigon Tourist Plaza are poor.

Shopping mall

The closure of a series of department stores, as explained by Jones Lang LaSalle (JLL), shows that the time of department stores is over. 

JLL estimates that the total area of department stores has shrunk to 101,877 square meters, at Diamond Plaza, Now Zone, Parkson CT Plaza, Parkson Hung Vuong and Parkson Saigon Tourist.

Meanwhile, the area of shopping malls has been expanding, reaching 880,646 square meters. Shopping malls can be seen in both the central area and other districts, and are leading the offline retail market.

According to analysts, shopping malls are all luxurious and large with diverse goods at different price levels, suitable to many different groups of customers.

In contrast, Parkson stores are smaller (less than 20,000 square meters in area), while there is not a wide range of products (they mostly sell fashion products and cosmetics).

The other difference between department stores and shopping malls is that the latter has food courts, entertainment areas, cinemas and various services.

Department stores sell only high-end products and target well-off people. Analysts say that this is a bad strategy.

HSBC predicted that Vietnam would have 33 million middle-class people by 2020 with rising discretionary income.

Other department stores are also facing big difficulties. Grand Plaza in Hanoi, Hang Da Galleria, Pico Saigon and Thien Son Plaza have left the market. 

Diamond Plaza in HCM City has been restructured. After 12 years of operation (2000-2012), Diamond Plaza was renovated with four floors and diverse services, including shopping, food, entertainment, supermarket, spa, bowling and household-use appliance area.


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