A report released by the market research company shows that the confidence of traditional grocery stores in the retail sector has remained low in the last two years, particularly in urban areas.
Nguyen Anh Dung, executive director of the Retail Measurement Services at Nielsen Vietnam, explained that the average RCI is 100. An index exceeding 100 indicates optimism among retailers and vice versa. Therefore, the RCI of local retailers in the first quarter implies that they do not foresee a bright future for the domestic retail market.
Retailers running traditional channels also voiced concerns over the spending habits of consumers and the number of consumers visiting their stores as well as the competitiveness of other retailers. In addition, they need help to win the support of consumers, noted Nielsen Vietnam.
With more than 1.4 million stores throughout the country, the traditional trading channel in general has secured the top position in terms of the contribution to the revenue of the fast-moving consumer goods (FMCG) sector. This channel made up approximately 83% of the total revenue in urban areas, equivalent to nearly US$10 billion in the FMCG sector.
The report on RCI is based on the results of direct interviews at more than 800 traditional grocery stores nationwide, which put a minimum of 30 product lines on sale, with the aim of gaining insight into the local retailers’ confidence, their primary concerns and their support for leading brands.