Parkson Vietnam closes another store

Parkson Vietnam is reportedly shutting down a fifth outlet, the second this year following Parkson Flemington.

Although the company has not made any official announcement, its signage has been taken down from the Cantavil An Phu building in Ho Chi Minh City’s District 2.

A concessionaire shared with local news media that Parkson had informed partners about the closure back in June.

Parkson Retail Asia has shuttered five outlets in Vietnam, including both of its stores in Hanoi. Mounting losses and the fact it is now down to just five stores, has fuelled speculation among retail experts that the company may leave Vietnam altogether.

According to the latest financial report from Parkson Retail Asia, Vietnam was the worst performing of its markets in the fourth quarter of the year to June 30.

Parkson Vietnam posted sales declines of 14.6 per cent in the fourth quarter and 8.3 per cent in the full year.

“The operating environment in Vietnam remains challenging amidst a crowded retail scene, wherein intensive promotional activities had to be carried out to capture sales,” the company said.

Malaysia’s Parkson Retail Asia entered Vietnam in 2005. It now has just five stores left in the country – three in Ho Chi Minh City, one in Hai Phong City, and one in Danang. Its most profitable, according to local media reports, is in Ho Chi Minh City’s District 5, on the edge of Chinatown, and which attracts Chinese tourists. But there are local rumours that may close as well.  

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