Parkson, the retail arm of Malaysian conglomerate Lion Group, has closed Parkson Flemington in HCM City, after eight years of operation.

Parkson Flemington is the fourth Parkson shopping centre in Viet Nam and the second in HCM City to shut shop. — Photo vietnamfinance.vn

The information was announced by its investor, Thuy Duong Trading and Real Estate One Member Limited Company - HCM City branch.

Parkson Flemington is the fourth Parkson shopping centre in Viet Nam and the second in HCM City to shut shop.

According to the retailer’s management board, the store had served a notice to its business partners on the plan to move out, and all had come to a mutual agreement.

The closure will not affect the business of other department stores operating under Parkson in Viet Nam. Parkson card holders will continue to enjoy the privileges and benefits, which will be applicable to all Parkson stores, according to the company’s notice.

Currently, Parkson has four stores in HCM City, including Parkson Le ThanhTon, Parkson CT Plaza, Parkson Cantavil and Parkson HungVuong.

According to figures released by Parkson Retail Asia, Parkson continues to suffer losses in the country despite the closure of many of its prominent trade centres, including Parkson Keangnam in January 2015, Parkson Paragon in May 2016, Parkson Viet Tower in December 2016 and now, Parkson Flemington.

Parkson suffered losses throughout 2017, and its turnover also went down. The retailer earned nearly VND500 billion (US$22 million) in revenue last year and suffered a loss of more than VND60 billion. The only positive factor is that Parkson’s losses are decreasing -- from VND25 billion in the fourth quarter of 2016 to VND10 billion in the fourth quarter of 2017. — VNS