According to data from the General Statistics Office, retail revenue of goods in the 7 months of 2024 is estimated to reach 2,801.1 trillion VND, accounting for 77.3% of the total and increasing 7.4% over the same period last year (excluding Price factor increased by 4.3%).
Of which, the food and food products group increased by 10.7%; Household appliances, tools and equipment increased by 11.1%; apparel increased by 9.1%; Vehicles (except cars) increased by 3.4%; Cultural and educational items increased by 11.2%.
The business results of retail businesses have recovered compared to the low base of the same period last year. Among them, with the largest point-of-sale system in Vietnam, Masan's WinMart chain, continues to maintain its "form", reaping positive revenue and profit figures.
WinMart chain will be profitable from June 2024
In terms of efficiency, the WinMart chain started to have positive profits from June 2024 after restructuring the store system and continuously applying solutions to improve efficiency. In the second quarter of 2024, WinCommerce (the company operating the WinMart/WinMart+/WiN chain) recorded revenue growth of 9.2% over the same period, reaching VND 7,844 billion throughout the network.
This is the result of upgrading and improving WiN stores (targeting consumers in urban areas) and WinMart+ Rural (serving consumers in rural areas). These two store models achieved superior efficiency compared to the traditional model with growth rates of 6.3% and 10.7% respectively in the second quarter of 2024 over the same period.
WinCommerce (WCM) growth accelerated to 6.8% in the second quarter of 2024 and to 9.7% in June alone thanks to increased store traffic. This is a clear sign of a roadmap to reap sustainable profits in the coming time.
The Winmart system is expected to continue to be profitable in the last 2 quarters of the year with revenue expected to maintain a growth momentum of more than 9%. Bao Viet Securities' analysis report said "In the first half of 2024, WCM focuses more on converting existing WinMart+ stores to WiN in urban areas and WinMart+ Rural in rural areas.
These two new store models, especially WinMart+ Rural, show impressive efficiency, when the growth rate of LFL revenue (stores opened before 2023) of each store is higher than the average of the entire chain. Even these two new models had a net profit in LFL stores in the first half of 2024.” This shows that WCM has found a winning model, ready for profitable scaling.
In 2023, WinCommerce (WCM) has completed restructuring and returned to the point-of-sale expansion strategy; Focus on separate models for each region and customer segment.
As part of the “Point Of Life” strategy, the WiN store chain focuses on urban consumers, achieving sales growth of 7.3%; WinMart+ Rural stores in rural areas focus on providing a variety of quality low-cost products, achieving 11.2% sales growth. WinCommerce is leading the market position with over 50% of the number of sales points of modern retail channels.
Retail chains expand to welcome the wave of consumer recovery
In addition to developing in urban areas, WinCommerce also focuses on developing in rural areas. With 65% of the population living in rural areas and a market size of about $50 billion, this is a fertile "land" for modern retailers to explore.
As of June 2024, WCM operates 3,673 points of sale, opening 40 new stores since December 2023. WCM is expected to accelerate the pace of store openings in the second half of 2024, aiming for the goal of 4,000 points of sale spread out. the whole country this year.
With a low base from 2023, it is forecast that retail businesses will continue to maintain growth in the second half of 2024, however each retail business has its own stories to expect growth.
Masan sets a revenue target of VND 60,000 billion for the WinMart system by 2028 with a profit margin of about 3 - 5%, based on the scale of about 8,000 stores/supermarkets. Average growth rate is 15% in 5 years, compared to 2023 revenue of about 30,000 billion VND.
According to Euromonitor, the size of Vietnam's modern retail market will increase to 20 billion USD in the next decade. This means that the market still has many opportunities for retail businesses to expand operations and grow revenue.
With the WinMart system, thanks to the advantage of synergy from Masan Consumer, the leading enterprise in the consumer goods market with the brands Chinsu, Omachi..., the company has the opportunity to grow strongly along with the recovery of purchasing power. consumption.
In Vietnam, WinCommerce is the only modern retailer with the leading advantage in point-of-sale scale, inheriting the consumer goods manufacturing strength of Masan Consumer - a subsidiary of Masan and owning Supra - a logistics company. self-built. Founded in 2022, Supra supports the WinCommerce retail system to reduce costs by 11%.
In the second half of 2024, WinCommerce continues to focus on the goal of profit after tax by accelerating LFL growth to 8-9% over the same period, while increasing the pace of store openings to reach ~100 stores new every quarter. WCM will continue to strengthen its position in rural areas with the WinMart+ Rural model.
