March sales are still positive growth
At today’s investor meeting of Mobile World Investment Corporation (MWG), the representative of MWG said that the Group’s March revenue was over 8,500 billion dong, a positive growth compared to the same period last year.
Online revenue tends to increase, accounting for about 10% of the total revenue in March. Of which, the proportion of online sales of Mobile World and Green Electronics accounts for 13% of the total revenue of these two chains.
The total number of TGDD and DMX stores that have been closed by the end of March is about 10% of the stores, which is equivalent to 10% of sales under normal operating conditions. Shops are mostly located in Hanoi. However, in the closing days, these stores still serve online orders.
High demand items include food and necessities, laptops, refrigerators, home entertainment devices (speakers, karaoke) and electric home appliances.
MWG estimates that Vietnam’s total consumption of mobile phones and electronics in 2020 will decrease due to the epidemic affecting people’s disposable income and sporting events being moved to 2021. However, public cash flow The company is still healthy, strategic partnerships with suppliers should be prioritized in sourcing. The first priority of MWG will be to ensure a healthy cash flow, preparing for sales promotion programs right after the epidemic is under control.
Regarding the dividend payment in cash, the company will propose several options to submit to the AGM for approval if the cash flow is guaranteed.
Gathering all efforts for Bach Hoa Xanh, preparing to implement the model of “going to market instead of customers” like Grabfood
MWG sees the advantages of BHX, due to changing consumer behavior from traditional to modern shopping. Therefore, despite being affected by Covid-19, MWG continues to plan to open 50-100 new stores per month if there are no unusual events.
This year, MWG will focus its efforts on Bach Hoa Xanh without expanding other chains, waiting for the epidemic to re-deploy.
With plans to respond to the Covid-19 epidemic, in cases where the Government requests to close stores but still allow people to move, MWG will deploy a service of “going to the market instead of the customers”, including the actual fresh produce.
How is the “shopping for customers” model different from buying online on the web? If purchased on the website customers will be selected 5000-7000 items and delivery system will pick up goods from large warehouses in the city, arrange delivery in the order of “first come first,” and delivery time It may take 1-2 days.
As for going to market instead of Grabfood model but the relationship is 1-1. Internal delivery application allows TGD / DMX staff to take orders of BHX, go to the store to get products and deliver home to customers. These staff will receive service fees of VND 30,000 / order.
At the state level, it is required to close shops and restrict people to move (except for essential needs), the employees of TGDD and DMT supermarkets move to work for BHX, deploy more options to go to the market instead. essential goods and delivery to customers.
Having already prepared the IT platform in advance, BHX has prepared to increase the productivity of online delivery, thousands of Mobile Sales / DMT employees can immediately be mobilized to support the BHX chain.
MWG said that the Group is negotiating with landlords to reduce rent by 50% or free rent during the closure period as required by the state authorities. For partners who are too rigid – do not share with the company, MWG will consider the possibility of moving to a nearby location with a more reasonable cost.
“The game of Bach Hoa Xanh is the game of expanding the frontier”
That was shared by Chairman Nguyen Duc Tai when answering investors’ questions about the breakeven point of the Bach Hoa Xanh stores. Mr. Tai said BHX’s desire in the next 1-2 years is to expand fastest and occupy the number 1 market share in the retail consumer goods industry.
“The ambition is clear but must be healthy, not the bigger the loss is. The expansion means the profit and the cost must be closer to each other, and the closer the break-even point is. The smaller the break-even point, the break-even point will be. It is very easy to create a break-even point, it only takes 2-3 months to stop expanding new stores. But that is not the game that BHX is playing, our game is to expand our territory. ” , Mr. Tai shared with investors.
According to Tran Kinh Doanh, general director of the company, 100% of BHX stores in the Covid-19 epidemic both increased sales and customer traffic. In March, the number of bill (visitors to buy) increased to 17 million compared to 12 million turns of the previous month (ie, increased 40-50%). Sales of this chain soared to 1,800 billion. The reason is that customers realize that prices in BHX do not dance like traditional markets and stable supplies. Mr. Doanh is quite confident and said that “the business situation is very good, the prestige of shopping places increases significantly during the season”, and BHX still plans to expand 100 shops per month and still comply with the provisions of government.