15:11 (GMT +7) - Thursday 12/12/2019

Business

Parkson closes fourth outlet in Vietnam

Released at: 17:19, 27/02/2018

Parkson closes fourth outlet in Vietnam

Photo from news.zing.vn

Closure of Parkson Flemington in HCMC's District 11 leaves six outlets still standing in Vietnam.

by Quang Huy

Malaysian department store operator Parkson has closed another outlet, Parkson Flemington in Ho Chi Minh City's District 11, for a total of four closed locations in Vietnam. 

The Thuy Duong Co., which operates the brand in Vietnam, said in an announcement on February 26 that Parkson Flemington has closed in late January.

All business partners at the outlet had been notified of and agreed to the shutdown, according to the company. It confirmed that it’s “business as usual” at the six remaining Parkson stores in Vietnam, where customers can still enjoy benefits from their membership.

In January 2015, the Malaysian chain closed its first Vietnam location, the Hanoi-based Parkson Keangnam. This was followed by the shutdowns of Ho Chi Minh City’s Parkson Paragon in May 2016 and Parkson Thai Ha in Hanoi in December the same year.

According to its website, Parkson now has six locations in Vietnam, with four in Ho Chi Minh City: Parkson Saigon Tourist Plaza, Parkson Cantavil, Parkson Hung Vuong Plaza, and Parkson CT Plaza. The others are Parkson TD in the northern city of Hai Phong and Parkson Vinh Trung in the central city of Da Nang. These are all under tough competition from modern, multifunctional shopping malls.

Parkson enjoyed its heyday in Vietnam between 2005 and 2010 but began to lag behind newer shopping venues in 2011.

Its malls lack the entertainment and dining experiences offered by modern trade centers and fail to welcome a special type of customer in the social media era - those who visit malls only for window shopping, taking selfies and Facebook check-ins, according to analysts.

The boom of e-commerce in Vietnam has also allowed people to easily purchase products from foreign merchants through the internet, which has had an adverse impact on Parkson’s business, which targets mid-luxury customers.

Last year Parkson raked in nearly VND500 billion ($22 million) in revenue from its Vietnam operations but accumulated losses rose to more than VND60 billion ($2.64 million), according to Parkson Retail Asia.

The loss in the fourth quarter of 2017 alone was more than VND10 billion ($440,000), compared to VND25 billion ($1.1 million) in the same period a year earlier.

As at 2017, Parkson Holdings Berhad had an extensive network of 131 stores spanning approximately 2.1 million sq m of retail space across cities in Malaysia, China, Vietnam, Indonesia, and Myanmar.

User comment (0)

Send comment