According to the latest business report from Mobile World Investment Corporation (MWG), its subsidiary Bach Hoa Xanh had 2,180 operating stores at the end of May. This marks a record size for the food and consumer goods retail chain, surpassing the 2,140 stores it operated at the end of 4/2022, when it began restructuring.

Bach Hoa Xanh cautiously resumed opening new stores in July of last year. However, the chain significantly accelerated its expansion efforts in 2025. Compared to the beginning of the year, Bach Hoa Xanh has added 410 stores, exceeding its 2025 target of opening 200-400 new locations. On average, the chain launched 2-3 new stores daily during the first 5 months of the year.

Over half of the new stores are concentrated in central Vietnam, a key region in the chain's business strategy this year. Management reported that all new stores have achieved positive gross profits at the store level, after deducting all direct operating expenses.

Also focused on increasing market penetration, Bach Hoa Xanh's expansion pace is outpacing WinCommerce, the operator of the WinMart supermarket chain and Win stores, which belongs to Masan Group. In the first 5 months of this year, WinCommerce added 257 stores, bringing its total system size to 4,085 points of sale.

This expansion rate represents 64% of WinCommerce's base scenario target (400 stores) and nearly 37% of its high-end scenario (700 stores). WinCommerce's management believes the chain is on track.

Similar to Bach Hoa Xanh, over 50% of WinCommerce's newly opened stores are in central Vietnam. Overall, stores opened from the start of the year to the end of May have generated positive profits, according to the company.

Regarding Bach Hoa Xanh, management previously stated that the average revenue of its central Vietnam stores reached 1.2-1.5 billion VND per month after the first three months of operation. They emphasized their ability to control costs effectively, keeping them 30% lower than typical stores, ensuring that increased coverage does not impact profitability.

Concurrently, the chain continues to operate its internal logistics system, minimizing outsourcing. The strategy involves developing distribution centers (DCs) alongside new store openings to optimize operating costs, rather than building DCs in advance. The current capacity of the chain's DCs is sufficient to support further network expansion in this region.

"Expansion in central Vietnam has essentially met our expectations for revenue and store-level efficiency, so we will continue to progress as planned," a Bach Hoa Xanh representative told VnExpress at the end of May.

Staff at a Bach Hoa Xanh store arranging vegetables. Photo: MWG

Staff at a Bach Hoa Xanh store arranging vegetables. Photo: MWG

With its renewed focus on daily store openings, Bach Hoa Xanh aims to increase revenue by at least 7,000 billion VND to 48,100 billion VND and contribute around 500 billion VND in profit to MWG. In the first 5 months of the year, Bach Hoa Xanh's accumulated revenue reached nearly 18,900 billion VND, a year-on-year increase of over 19%. This growth stems from both main product categories: fresh food and fast-moving consumer goods (FMCG). The company has achieved over 39% of its revenue target.

In Quarter I, Bach Hoa Xanh recorded a net profit of approximately 22 billion VND, reaching only 4.4% of its target. Management acknowledges the 500 billion VND profit target as challenging but remains confident in achieving it.

In its business assessment at the end of April, when Bach Hoa Xanh had completed 90% of its new store opening plan, Vietcombank Securities (VCBS) described the chain's expansion rate as outstanding. Most stores in central Vietnam are profitable at the store level, approaching or exceeding the break-even point.

From Quarter II onwards, as investment costs cease to be a burden and new stores begin contributing stable revenue, VCBS expects Bach Hoa Xanh to achieve a net profit of approximately 120 billion VND per quarter.

Tat Dat