While it currently runs only one outlet in Ho Chi Minh City, French supermarket chain operator AuchanSuper has plans to increase the number to 17 in 2016, a top executive said.
The maiden AuchanSuper-run Simply Mart in the southern Vietnamese metropolis is located in District 5, and two more stores are scheduled for opening by the end of this year, chief financial officer Philippe Delalande said at a meeting with the city’s deputy chairman Le Thanh Liem on Thursday.
One of the two coming Simply Mart stores is expected to open at the Le Thanh Apartment in Binh Tan District in November, according to newswire The Saigon Times Online.
In 2016 15 more such outlets, spanning from 2,000 to 3,000 square meters each, are expected to add to the list, according to the CFO.
AuchanSuper is expected to spend a total of 35 million – 40 million euros (US$38.9 million – $44.5 million) on the expansion plan in Vietnam in 2015 and 2016, Delalande told the Ho Chi Minh City official.
The French firm will need around 1,000 employees for its Ho Chi Minh City operations.
AuchanSuper has decided to expand its presence thanks to the potential for growth of the Vietnamese retail market, according to Delalande.
The Ho Chi Minh City deputy chairman said he believes AuchanSuper, as a major experienced European retailer, will achieve success in Vietnam.
Ho Chi Minh City currently accounts for 30 percent of the total retail sales, which Liem said will create favor condition for AuchanSuper to boost business.
The Simply Mart in District 5 was previously known as S.Mart, which was inaugurated by C.T Group in 2012.
AuchanSuper currently operates supermarkets and hypermarkets in 15 countries, but will only focus on the supermarket segment in Vietnam, according to The Saigon Times Online.
In Ho Chi Minh City, the French company will face completion from strong players such as Big C, Lotte Mart, Aeon Mall, Metro, or Giant.
AuchanSuper is a subsidiary of Groupe Auchan SA, a French international retail group and multinational corporation headquartered in Croix, France.
It is one of the world"s principal distribution groups with a presence in 15 countries and 269,000 employees.
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France’s AuchanSuspaner to ospanen 15 stores in Ho Chi Minh City in 2016
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