Mobile World may close 200 more stores in the fourth quarter

The recently announced October business results of Mobile World Investment Corporation (MWG) revealed that the company will consider closing about 200 stores in the last months of the year.

"These are stores that are not effective in terms of revenue and profit. We will closely monitor the results to make appropriate adjustments at each time," The Gioi Di Dong's information announcement wrote.

The company currently has more than 5,600 stores, including 1,158 The Gioi Di Dong stores, 2,281 Dien May Xanh stores, more than 1,700 Bach Hoa Xanh supermarkets and 540 An Khang pharmacies.

The intention to close down inefficient The Gioi Di Dong and Dien May Xanh stores was also mentioned by Chairman Nguyen Duc Tai in a recent meeting with investors. With the weak and prolonged market purchasing power, the company believes that it cannot maintain inefficient divisions.

"In fact, in the past, many MWG stores have not brought in money for the company, which is completely different from previous performance," said Mr. Tai. However, he affirmed that closing stores will not affect revenue, but will only "transfer from one store to another." In addition, costs for premises, staff, electricity and water have been cut, helping the company improve profits.

This, according to Mr. Tai, is based on the fact that MWG's network of points of sale is very dense, with two stores sometimes only a few hundred meters apart. MWG only wants to keep the effective parts to focus more efforts.

Regarding business results, the total revenue of The Gioi Di Dong system in October was 11,190 billion VND, the first month this year with positive growth compared to the same period.

For the two chains The Gioi Di Dong and Dien May Xanh, total revenue in October reached more than 7,800 billion VND, down 5% compared to the same period but up 8% compared to September thanks to the contribution of iPhone products due to the effect of launching new products. Accumulated in 10 months, total revenue of these two chains reached 70,200 billion VND, down 21%.

Bach Hoa Xanh's cumulative revenue in the first 10 months of the year reached VND25,300 billion, up 13%. In October alone, the food chain's revenue was more than VND3,000 billion, up 29%, with an average revenue of about VND1.7 billion per store.