VinCommerce, the retail store arm of Vietnamese conglomerate Vingroup, has acquired 87 Shop&Go convenience stores for $1, per an official announcement.
Shop&Go had offered to sell its business at that price, VinCommerce said.
Established in 2005, Shop&Go currently has 70 stores in Ho Chi Minh City and another 17 in Hanoi. VinCommerce operates the VinMart supermarket chain and Vinmart+ convenience stores, totalling over 2,000 outlets nationwide.
“We have invested intensively in Shop&Go but business results have not turned out as we expected. Vietnam’s retail sector is promising but competition is at the same time very much fiercer than we envisioned, so we have decided to withdraw from the market,” a spokesperson for Shop&Go said.
VinCommerce said it will upgrade the Shop&Go stores and integrate them into the VinMart+ network. The upgrade exercise is expected to be completed in April.
Since the launch of the supermarket and convenience store chain in 2014, Vingroup has aggressively expanded through the M&A route. It acquired Fivimart from Japan’s AEON, Vinatexmart, Oceanmart and Maximark a few years ago.
In 2016, it was rumoured that Japanese operator 7-Eleven was eyeing VinMart+ for acquisition for its entry into Vietnam. However, Vingroup denied the rumour, saying it would not sell VinMart+ at any offered price.
In addition to retail, Vingroup has also developed a smartphone manufacturing unit, which has purchased 51 per cent of Spanish smart devices maker BQ.