Vietnam’s leading mobile retailer, The Gioi Di Dong, has recently announced that it will shut down its sportswear stores in Vietnam and electronics store chain in Cambodia. The company’s representative has confirmed that AVASport and Bluetronics chains will close this year. The decision was made because 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, and Bluetronics is a chain of electronics outlets in Cambodia. 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. The Cambodian market is fairly small, and the tax policy is complicated, making it difficult for the company to sell its products at competitive prices.
The Gioi Di Dong’s CEO, Doan Van Hieu Em, explained during a meeting with investors that if Bluetronics strictly complies with sales and tax policies, it will have to sell its products at about 10-15 percent higher than market prices. However, if the chain lowers its prices to compete with other brands, there will not be any profit. As a result, the company has decided to close its Bluetronics chain in Cambodia.
On the other hand, AVASport opened in Vietnam in early , 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, according to The Gioi Di Dong’s report. Therefore, the company has decided to shut down its AVASport chain as well.
The decision to close the two chains is part of The Gioi Di Dong’s efforts to streamline its business operations and focus on its core business of selling mobile phones and accessories. The company is one of the largest mobile retailers in Vietnam, with more than 1,400 stores nationwide. It is also expanding its e-commerce platform to capture a larger share of the growing online shopping market in Vietnam.
In conclusion, The Gioi Di Dong’s decision to shut down its sportswear stores in Vietnam and electronics store chain in Cambodia is due to the lack of potential to generate significant revenue or profit. The company is focusing on its core business of selling mobile phones and accessories and expanding its e-commerce platform to capture a larger share of the growing online shopping market in Vietnam.
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