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Parkson closes the 4th outlet in Vietnam
All business partners at the outlet had been notified of, and agreed upon, the shutdown, according to Thuy Duong Co.
It was quoted by local media that the store had served a notice to its business partners on the plan to move out, and all had come to a mutual agreement.
In January 2015, the Malaysian chain closed its first Vietnam location, Hanoi-based Parkson Keangnam.
This was followed by the shutdowns of Ho Chi Minh City’s Parkson Paragon in May 2016, and Parkson Thai Ha in Hanoi in December the same year.
According to its website, Parkson now has six open locations in the Southeast Asian country, with four in Ho Chi Minh City – Parkson Saigon Tourist Plaza, Parkson Cantavil, Parkson Hung Vuong Plaza and Parkson CT Plaza.
Parkson enjoyed its heyday in Vietnam between 2005 and 2010 but began to lag behind newer shopping venues in 2011.
Parkson stores lack the entertainment and dining experiences offered by modern trade centers and fail to welcome a special type of customer in the social media era – those who visit malls only for window-shopping, selfies and Facebook check-ins, according to analysts.
The boom of online commerce in Vietnam has also allowed people to easily purchase products from foreign merchants through the Internet, having an adverse impact on Parkson business, which targets mid-luxury customers.
Last year Parkson raked in nearly VND500 billion (US$22 million) worth of revenue from its Vietnam operations, but its accumulated losses rose to more than VND60 billion ($2.64 million), according to Parkson Retail Asia.
The loss in the fourth quarter of 2017 alone was more than VND10 billion ($440,000), compared to VND25 billion ($1.1 million) in the same period one year earlier.
As of 2017, Parkson Holdings Berhad had an extensive network of 131 stores, spanning approximately 2.1 million square meters of retail space across cities in Malaysia, China, Vietnam, Indonesia and Myanmar.
The closure will not affect the business of other department stores operating under Parkson in Vietnam. Parkson cardholders will continue to enjoy the privileges and benefits, which will be applicable to all Parkson stores, according to the company’s notice.