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Petrolimex to expand convenience store chain

Released at: 08:30, 26/05/2019

Petrolimex to expand convenience store chain

Photo: Petrolimex

More convenience stores to open at its nationwide network of 5,200 gas stations.

by Phi Linh

Petrolimex plans to open more convenience stores in its network of 5,200 gas stations around the country, following five years of research.

Each store will have 1,500 to 2,000 products on its shelves, a Petrolimex representative told a recent meeting of the group in Hanoi. Its strategic partner, JX Nippon Oil, will support it in setting up the chain.

The group is developing strategic re-planning and the re-planning of convenience stores, especially on major streets in large cities. This is a long-term plan and each year the group spends about VND1.2-1.5 trillion ($51.3 million-$64.1 million) on investment activities.

It developed more than 100 stores last year and put 70 into operation, according to CEO Pham Duc Thang.

Petrolimex has tested the market since 2017 with its P-Mart store in Hanoi’s Hoai Duc district. The store only sells products such as lubricants, drinks and processed food.

The convenience store at gas stations model has developed effectively and effectively in many countries around the world, such as the US, Australia, and many Asian countries.

In Australia, the Caltex Petroleum Group partnered with Woolworths Group Limited last July to establish 250 convenience stores selling food and essential items at Caltex gas stations over the next six years, with 50 sites planned over the next two years. Woolworths is responsible for providing products.

The alliance will increase the network of sites where customers can redeem fuel discounts and earn Woolworths Rewards points, significantly expanding Woolworths’ Metro convenience store footprint and locking in a competitive gas price for the Woolworths petrol business. Moreover, purchases at Woolworths’ supermarket network can be converted into bonus points for buying gas at Caltex gas stations.

Stepping into the convenience store sector, Petrolimex will compete with experienced players such as Circle K, 7-Eleven, VinMart +, and others, but none of these brands are affiliated with gas stations.

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