Traditional grocers lose out to modern retail – news vietnamnet best italian dinner party recipes

Hai huong, 66, owns a small grocery store in an alley off huynh dinh hai street in HCM city’s binh thanh district. The shop has helped her run her family for the last 20-odd years.

But she admitted their choice was easy to understand because the modern retail stores have a huge range of products, a majority of them of high quality, and routinely offer promotions.

Thousands of these so-called mom and pop shops in cities and towns around the country face a similar fate as modern retail shops spring up everywhere.

According to a recent survey by the vietnam high quality goods association, traditional grocery shops’ share of business has gone down from 17 per cent in 2011 to 9 per cent now.

From just two supermarkets in HCM city in the late 1990s growth has been dizzying and now there are thousands of modern stores of all types around the country.Convenience stores mini

by 2015 there were round 2,000 convenience stores and mini supermarkets.

Vinmart+ for instance entered the retail business only three years ago but has already become the biggest convenience store chain in the country with 1,000 outlets.

A recent report by kantar worldpanel said the modern retail channel is growing at 15 per cent, a much higher rate than traditional channels like wet markets and grocery shops.

Most of the latter are small, measuring under 20 square metres on average, meaning the area for displaying goods is limited, a major factor in shopping.

Many of the products sold at these traditional stores do not have clear information with regard to product origin, expiry date, quality and usage instructions.

Vietnam’s strong economic growth, a rapidly growing middle class with higher disposable incomes, frenetic urbanisation and increasing concern about hygiene and food safety are major factors fuelling the rapid growth of modern retail.Convenience stores mini

The country also has a growing number of sophisticated consumers, especially young urban consumers, and middle-class shoppers who have little time to shop daily for food.

It also has a large number of women in the workforce with rising disposable incomes, who buy higher value consumer items for their children and families.

Food safety and hygiene have an increasingly important influence over consumers’ food purchasing decisions. As a result, many are willing to pay a premium for perceived quality, nutrition and hygiene in their food and drinks.

The US’s A.T. Kearney says 24-hour convenience stores and mini supermarkets are now the most favoured shopping outlets among vietnamese consumers.

There is a dizzying range of chains now — circle K, B’s mart, family mart, ministop, shop&go and 7-eleven owned by foreigners and coopfood, co.Op smile, satrafoods, vinmart+, hapro and vissan owned by vietnamese companies — with all of them having a presence all over the nation.Convenience stores mini

For instance, according to the ministry of industry and trade’s circular no.08/2013, in case of setting up a retail establishment of foreign retailers with area of less than 500 square meters in area planned for goods trading activities by central-affiliated cities and provinces and already finished construction of infrastructure, it is not required to perform provision on checking the economic demand.