After a restructuring phase to resolve a situation where "the more we do, the more we lose", WinCommerce (operator of WinMart, WinMart+) and Bach Hoa Xanh, the two largest modern retail chains in Vietnam, are accelerating their network expansion strategies. Store openings were trialed in late 2024, gained momentum in 2025 with an "open and profit" approach, and are now officially accelerating this year.

A key commonality in the current strategies of both WinCommerce and Bach Hoa Xanh is prioritizing operational efficiency at each store. Unlike previous phases that focused on quantity, all newly opened stores must quickly achieve break-even or direct profitability.

According to a report from parent company Masan Group (MSN), WinCommerce has recorded profits for 7 consecutive quarters through Q1/2026. Bach Hoa Xanh's management also states that all new stores opened in the first quarter achieved positive earnings before interest and taxes (EBIT) at the store level.

Both WinCommerce and Bach Hoa Xanh are also expanding into new localities. Both chains recognize that major city markets are becoming saturated, while rural areas and provinces in the Northern and Central regions offer significant potential to shift consumers from traditional channels (markets, convenience stores) to modern retail. Analysts from NH Vietnam Securities (NHSV) believe this market share shift from small, traditional stores is a primary growth driver for modern chain models.

A customer shops for groceries at a WinMart store. Photo: MSN

WinCommerce is demonstrating robust expansion, planning to open approximately 1,500 new stores in 2026, targeting 6,100 points of sale by year-end. In the first four months of the year alone, the chain launched an additional 348 new stores.

WinCommerce's distinct strategy is its focus on rural areas. In the first quarter, 87% of new store openings were rural WinMart+ models. Data from SHS Research indicates that revenue from the rural WinMart+ system grew by 59% year-over-year, the strongest performance across the entire system, significantly surpassing urban Win models (16%) and WinMart (18%). Additionally, WinCommerce is researching a store model for remote areas and plans to pilot a convenience store (CVS) model by late 2026.

To manage this vast network, the chain is accelerating technology adoption. A report from MB Securities (MBS) states that WinCommerce has automated ordering for approximately 74% of its goods, with a goal to reach 90% by 9/2026. This automation reduces workload by 15% and saves about 300 billion VND in operating costs.

In contrast to its competitor's widespread approach, Bach Hoa Xanh is concentrating its efforts on expanding into the Northern and Central regions. For its plan to open 1,000 new stores in 2026, the chain expects to open 50% in the Southern region and 50% in the other two regions. Recently, it launched its first store in Hanoi, marking a milestone in its push to capture the Northern market.

In the Northern region, Bach Hoa Xanh is implementing a small to medium-sized store model to optimize capital expenditure (CapEx). The chain's management noted that despite smaller footprints, purchasing power in the Northern region is currently strong, even surpassing the Central region. Management anticipates that the efficiency of Northern stores will be comparable to those in the other two regions.

Bach Hoa Xanh's expansion strategy aims not only to boost revenue but also serves as a crucial step towards its planned initial public offering (IPO) in 2028. According to an NHSV report, Bach Hoa Xanh remains a key asset and a primary growth driver for its parent company, Mobile World Investment Corporation (MWG), leveraging the consumer trend towards food and fast-moving consumer goods (FMCG) at modern chains.

A Bach Hoa Xanh employee processes a customer's payment. Photo: MWG

In the long term, WinCommerce aims for a modern retail network of up to 13,000 stores by 2030, with projected revenue reaching 120,000 billion VND. The company believes the shift from traditional markets to mini-supermarkets in rural areas will accelerate, supporting its market penetration strategy.

For Bach Hoa Xanh, the focus in the coming years remains on absolute profit growth and enhancing customer experience, rather than solely on gross profit margins. The chain expects that once its Northern and Central stores mature, revenue per point of sale will reach levels comparable to the current Southern region.

Tat Dat