Saigon Co.op eyes 4.5% revenue growth

Wednesday, Mar 30, 2022 07:01

Saigon Co.op’s leaders determine to realise the business targets set for 2022. — Photo courtesy of Saigon Co.op

The Saigon Union of Trading Co-operatives (Saigon Co.op) targets sales growth of 4.5 per cent this year.

The retailer also plans to open three to five supermarkets, hypermarkets or shopping malls and 80-100 stores besides closing loss-making ones.

In the small retail segment, it will re-zone the development of each chain -- Co.op Food, Co.op Smile and Cheers.

Nguyen Anh Duc, Saigon Co.op’s general director, told a review meeting in HCM City on March 28 that this year the co-operative would focus on optimising the efficiency of its retail models and reforming the display and shopping spaces at its stores to offer a better customer experience.

It also plans to enhance the use of advanced IT solutions in its operation system and improve logistics, he said.

Last year was very challenging for the retail sector, he said.

Amid social distancing and other restrictions, goods transportation was very difficult due to inconsistent pandemic prevention and control regulations in provinces and cities. Besides, testing, logistics and delivery costs all increased a great deal.

According to Saigon Co.op, during the peak period of the pandemic, Saigon Co.op's points of sales, both offline and online, were overloaded but yet it made losses.

Consumers mainly bought fresh foods (more than 75 per cent), a product that offers the lowest profits, it explained.

Saigon Co.op achieved sales of VND30.67 trillion (US$1.35 billion) last year, down 7.8 per cent from 2020.

Its expansion was also greatly affected by the pandemic, with less than 40 new Co.opmart, Co.op Food, Co.op Smile, Cheers, and Finelife stores opened last year.

But sales on online channels (SGC app, Co.oponline, Affiliated app) quintupled from the time before social distancing.

Despite a shortage of workers due to the pandemic, Saigon Co.op kept providing more than 46,000 meals to quarantined areas, field hospitals, vaccination points, and COVID-19 checkpoints every day.

It also donated 1,000 ‘welfare bags’ worth VND200,000 each with essential foods to trade unionists and workers affected by COVID. — VNS

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