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Parkson Hung Vuong in HCM City
In 2005, Parkson Saigon Tourist Plaza opened, becoming the first international department store in HCM City. The Malaysian brand came to Vietnam early when few malls of its kind existed.
No official statement has been made, but Parkson’s signboard at Cantavil has been pulled down. With the closure of the fifth shopping center in Vietnam, Parkson now only has three left, Parkson Hung Vuong, Parkson Saigon Tourist Plaza and Parkson CT Plaza.
The retailer in February closed the store on Le Dai Hanh street in district 11 in HCM City. In the last two years, Parkson has shut down shopping centers in Hanoi and HCM City, attributed to increasingly high losses.
Parkson reported a loss of VND5 billion in the third quarter of 2016, while the figure rose to VND24 billion in Q1 this year. Prior to that, Parkson Retail Asia reported that Parkson in Vietnam took losses in all four quarters of 2017, totaling VND60 billion.
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No official statement has been made, but Parkson’s signboard at Cantavil has been pulled down. With the closure of the fifth shopping center in Vietnam, Parkson now only has three left, Parkson Hung Vuong, Parkson Saigon Tourist Plaza and Parkson CT Plaza. |
The three shopping centers, all in HCM City, are also poorly patronized. Parkson Saigon Tourist Plaza in district 1 is often deserted despite the presence of CGV cinema complex in the same building. The situation there is in contrast with the crowded Vincom Center, located opposite Parkson.
Many other retail chains are in the same situation.
Diamond Plaza in district 1 is not that busy. At NowZone in district 1, only two cafes on the ground floor are busy. The other shopping centers in district 7, including VivoCity and Crescent Mall, are only bustling on weekends.
Vu Vinh Phu, a trade expert, and former chair of the Hanoi Supermarket Association, said Parkson performed well in the past as it arrived in Vietnam years ago when there were few shopping centers.
But as more large shopping centers were established, the competition worsened. Parkson’s rivals not only act as retailers, but also provide many associated services.
People go to shopping malls not only to buy goods, but also to enjoy food and entertainment services.
Phu said earlier this year, when Parkson shut down Parkson Flemington that demand for the products Parkson is trading show no signs of increase. In Vietnam, high income earners, those with monthly income of VND12 million and higher, only account for 15-20 percent of the population.
US$1=VND22,000
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