Convenience stores become more popular
A recent survey by Nielsen, a market survey firm, found that with the increasingly faster pace of life and smaller scale of households, Vietnamese nowadays attach much importance to ‘convenience’ when choosing shops.
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Nearly six out of every 10 Vietnamese buyers said that they choose the shops because they are located in advantageous positions. Meanwhile, nearly five out of every 10 buyers would go to the shops with good design and displays which allow them to easily select products.
Roberto Butragueño from Nielsen Vietnam commented that retailers need to consider what the roles their stores would play in their omnichannel strategy.
According to the HCMC Industry and Trade Department, the number of Circle K shops owned by Vong Tron Do Company has reached 150, while there are 70 Family Marts owned by Tien Loi Gia Dinh Vietnam, 98 B’s Marts belonging to B’s Mart Company Ltd and 111 Shop & Gos belonging to Cua Hieu & Suc Song JSC.
Analysts have noted a big change with convenience stores recently in which the stores tend to develop into ‘hybrid’ shops which aim to both provide diversified goods and serve as fast food cafes.
Circle K proves to be faster than its rivals in expanding the network. About 2-3 shops are opened in every residential quarter and each of them is just 500 meters from each other.
In Ward 11 of district 6 in HCMC, for example, there are three Circle Ks, including two on Binh Phu street and one on Cho Lon street. The retail chain has changed its shop identity with new signboards similar to that in the US.
Explaining the rapid increase in the number of shops just, Tony Yang, director of Circle K Vietnam, said Circle K Vietnam has been developed under the franchise contract with the US Circle K. After the restructure in early 2015, Circle K has been focusing on 4F service (fresh, friendly, fast and full).
From the shops which only sell consumer goods under the mode of convenience store, Circle K now provides many different services, including fast food (processing food on the spot to the customers’ orders), drinks with its private brands and additional amenities such as seats and wi-fi.
Meanwhile, Vingroup, which has been developing its retail chains since 2010, reportedly opens two convenience stores (Vinmart+) each day. With 650 Vinmart+s opened by May, it has become the largest convenience store chain in Vietnam.
