MWG sees drops in revenue in November after closing about 150 stores

A store of Mobile World Investment Corporation on Điện Biên Phủ Street, Hà Nội. — VNS Photo Ly Ly Cao

HÀ NỘI — Revenue of all three main store chains of Mobile World Investment Corporation (MWG), including Mobile World – Topzone, Điện Máy Xanh and Bách Hóa Xanh, decreased in November from the previous month after the shut down of numerous stores.

In its updated business results for the first 11 months of 2023, MWG reported an accumulated revenue of nearly VNĐ108 trillion (US$4.4 billion), down 13 per cent year-on-year.

As a result, the company has completed 80 per cent of the year’s revenue plan. Revenue from online channels dropped by 12 per cent from last year to VNĐ14.7 trillion.

In November alone, MWG’s total revenue reached more than VNĐ9.9 trillion, equivalent to last November, but decreased by 11 per cent from the peak set in October. This was also MWG’s lowest revenue since July 2023.

Last month, the revenue of all three main store chains, Mobile World – Topzone, Điện Máy Xanh and Bách Hóa Xanh, fell from the previous month. In particular, Mobile World chain’s revenue was down 27 per cent to VNĐ2.3 trillion.

The company said the fall was attributed to lower iPhone demand after its first introduction to the domestic market.

Similarly, due to the low season for the electronics industry, Điện Máy Xanh chain recorded a revenue of nearly VNĐ4.3 trillion, down 9 per cent from October.

Meanwhile, Bách Hóa Xanh’s revenue reached about VNĐ3 trillion, a slight decrease of 2 per cent from the previous month. The average revenue per Bách Hóa Xanh’s store was VNĐ1.75 billion. In the first 11 months of the year, MWG’s supermarket system earned VNĐ28.4 trillion in revenue, up 16 per cent over last year.

According to the company, it is accelerating the implementation of a comprehensive restructuring from the store and logistics departments to the logistics and business management departments with the aim of improving revenue growth, market share, and profits by 2024.

Of which, MWG will focus on keeping core activities and chains, stores, and product lines that create value for the company in the short term, gradually eliminating waste, and postponing investment in R&D projects in the medium and long term. It will also reallocate resources and solve resource redundancy issues arising from the restructuring.

In October and November, the company closed nearly 150 stores belonging to Mobile World, Điện Máy Xanh and Topzone chains and will continue to close a number of ineffective stores in December to stabilise operations ahead of the peak sales season during the Lunar New Year holidays 2024.

Meanwhile, Bách Hóa Xanh, An Khang and Avakids chains have completed the review of store closures in November and will remain stable until December. Costs related to store closures in the fourth quarter of this year will be fully reflected in the 2023 results and will not be listed in the next year’s performance.

At the end of November, MWG had 1,100 Mobile World/Topzone stores, 2,210 Điện Máy Xanh stores, 1,697 Bách Hóa Xanh stores, and 527 An Khang pharmacies.

On the stock market, MWG shares closed Wednesday at VNĐ42,850 a share, up 0.35 per cent. — VNS