The French supermarket group’s CEO Edgar Bonte told newspaper Les Echos that the group had decided to sell its 18 stores in Vietnam which currently generate sales of US$50.4 million.

In March, Auchan Retail said its Italian and Vietnamese businesses had faced tough conditions.

The group has since sold the Italian operation – which closed 23 stores last year – to Conrad.

Entering Vietnam in 2015, Auchan had planned to invest US$500 million to open 300 stores.

The stores are often located in apartment buildings, targeting local residents.

According to local news site VnExpress, Auchan Vietnam is in talks with a local retail group to acquire the business.