Mobile World, listed on the Ho Chi Minh Stock Exchange under the ticker MWG, is a prominent Vietnamese retail conglomerate. MWG has a network of retail chains, including mobile phone retailer The Gioi Di Dong, home appliances vendor Dien May Xanh, Bach Hoa Xanh grocery stores, and An Khang pharmacies.
In the first six months of 2024, MWG’s revenue increased by 15 percent compared to 2023 due to a broader economic recovery, stimulating consumer spending. Profit after tax also surged to US$84.1 million compared to US$1.6 million in the first half of 2023. This improvement was primarily driven by strategic restructuring efforts–the company laid off 5,936 workers and closed a bunch of underperforming stores.
Specifically, MWG closed over 100 stores of its Thegioididong and DienmayXANH chains due to declining demand for electronic devices and intense marketplace competition. This decision aligns with a broader industry trend, with other electronics retailers like FPT Shop also shuttering underperforming outlets.
Furthermore, the An Khang pharmacy chain has closed 140 ineffective stores so far this year. This contraction followed an aggressive expansion phase from 2021 to 2022. Despite these efforts, An Khang lost over US$7 million in the first half of 2024, partly due to intense competition from other pharmaceutical chains like Pharmacity and the FPT Retail chain, Long Chau.
For contrast, MWG opened three new Bach Hoa Xanh stores during the first six months of this year. This chain’s revenue surged by 42 percent year-over-year reaching US$786.2 million compared to US$551.2 million in 2023. This significantly outperformed Wincommerce, a rival chain under Masan Group, which reported a 9 percent increase year over year reaching US$640.5 million.
Disclosure: The author does not have any financial interest in MWG stock.
See also: Vietnam Supermarkets: Foreign Retailer’s Guide 2024