HCMC shopping mall out of business after just five years.
Parkson Paragon in the Phu My Hung new urban area in Ho Chi Minh City officially closed its doors on May 16 after five years of operations.
The management unit at Parkson, the Thuy Duong Company, announced the closure two months ago and has received agreement from tenants.
The company did not provide any reason for the closure, saying simply that it would not affect other department stores under the management of Parkson in Vietnam and that the benefits for Parkson membership card holders remain unchanged.
Industry insiders, meanwhile, say that Parkson Paragon’s closure is no surprise given that it has failed to attract customers.
Parkson Paragon was opened in April 2011 with investment of $5 million. The management contract was reported to be for a term of 19 years. The investor, however, decided to shut down the building after just five years.
In January 2015 Parkson pulled out of the 72-storey Hanoi Keangnam Landmark Tower because its store had not met revenue target since opening in 2011.
The department store chain also failed to meet the shopping demands and habits of Vietnamese consumers, who began preferring integrated shopping malls with multiple features like those from South Korea and Japan to those selling only clothes and cosmetics.
The Malaysian company now has eight shopping malls in Vietnam, including five in Ho Chi Minh City.