Vietnam’s leading mobile retailer The Gioi Di Dong has announced it will shut down its sportswear stores in Vietnam and electronics store chain in Cambodia.
A representative of The Gioi Di Dong confirmed to Tuoi Tre (Youth) newspaper on Friday that the company will close its AVASport and Bluetronics chains this year.
In the report on business results sent to investors, the firm stated the two chains do not have the potential to contribute significant revenue or profit in the future.
AVASport is a chain of authentic sporting goods stores in Vietnam, while Bluetronics is a chain of electronics outlets in Cambodia.
The Cambodian market is fairly small and the tax policy is complicated, Doan Van Hieu Em, CEO of The Gioi Di Dong, said during a meeting with investors.
If strictly complying with sales and tax policies, Bluetronics will have to sell its products at about 10-15 percent higher than market prices.
If the chain lowers its prices to compete with other brands, there will not be any profit.
The Bluetronics chain has been operating in Cambodia since 2017 and was expected to be a stepping stone for The Gioi Di Dong’s ambition to expand its operations in Southeast Asia.
This chain had up to 50 stores in Cambodia in 2021, of which only two remain open at present.
Meanwhile, the AVASport chain opened in Vietnam in early 2022 but it did not achieve the desired business results.
“The unfavorable macro-situation, weak demand, thrifty consumption trends, and high operating costs are expected to continue in 2023,” The Gioi Di Dong stated in its report.