WinCommerce, the operator of the Winmart supermarket chain and Win store models under Masan Group (MSN), recently announced a profit after tax of over 68 billion VND for the first half of this year, a significant improvement compared to the loss of over 223 billion VND in the same period last year. Despite reporting profits for 4 consecutive quarters, the chain still has over 3,878 billion VND in accumulated losses as of the end of June.

A similar story is found at Bach Hoa Xanh, a subsidiary operating the food and fast-moving consumer goods retail chain of Mobile World Investment Corporation (MWG). In a recent earnings call, management reported a profit of approximately 205 billion VND for the first six months of the year. This marks five consecutive profitable quarters, yet they still carry nearly 6,918 billion VND in accumulated losses as of the end of June.

Overall, since reporting profits in the second half of last year, the profits of the two largest modern retail chains in the country have not been stable. In the most recent quarter, Q2 of this year, WinCommerce's profit was about 10 billion VND, the lowest since achieving profitability and marking the third consecutive quarter of decline. Meanwhile, Bach Hoa Xanh reported a profit of approximately 182 billion VND in Q2, the highest since becoming profitable. However, in the first quarter of the year, the chain's profit was only 22 billion VND, significantly lower than the last two quarters of 2024.

While not explicitly acknowledging the instability of profit growth, the management of both retail chains has repeatedly emphasized that improving and maintaining current profitability is their top priority. Bach Hoa Xanh is particularly focused on eliminating its nearly 6,918 billion VND in accumulated losses to realize its goal of listing on the stock market in 2028.

Vu Dang Linh, CEO of MWG, outlined the plan to achieve this goal: boosting revenue growth through new store openings with various business models, reducing store operating costs and logistics expenses, and fostering a "family" culture with suppliers to optimize costs from production and packaging to warehousing, transportation, advertising, promotions, display, and after-sales services.

This year, management is confident in achieving an annual profit after tax of over 600 billion VND. This surpasses the initial minimum target of 500 billion VND by 20%. By the end of the year, the chain plans to open approximately 200 additional stores. If successful, they will have opened a total of 620 stores this year, exceeding the initial plan of 200-400 stores.

Starting next year, Bach Hoa Xanh expects to open an average of about 1,000 stores annually and make its initial foray into the northern market. Management declared they have found a model for nationwide expansion, entering a phase of "expansion and efficiency."

Bach Hoa Xanh staff checking out a customer. Photo: *Bach Hoa Xanh*

Ensuring WinCommerce's profitability has been a consistent message in Masan's communications to shareholders. This year, the chain projects net revenue of 35,600-36,900 billion VND, an 8-12% increase year-over-year, and positive profit after tax for the entire year. This will be driven by network expansion and accelerated same-store sales growth.

In the second half of the year, WinCommerce will focus on maintaining its current expansion rate to achieve its target of over 4,500 stores by the end of the year, along with a region-focused strategy. They will also continue to implement strict cost control measures to ensure profitability.

The chain is pursuing a "bringing supermarkets to small alleys" strategy, with new rural stores opened since the beginning of the year reporting positive profits. WinMart+ stores in the central region are seen as a new growth driver, thanks to a product portfolio tailored to consumer needs and an advantage in securing high-traffic locations.

WinCommerce is also confident in its mini-supermarket model, planning to add 400-700 stores this year. The strategy for this model involves increased collaboration with Masan brands to create differentiated product assortment and launch strategies, as well as personalized promotions and marketing.

Customers shopping for fruit at a Winmart supermarket. Photo: *Masan*

The operational efficiency of WinCommerce and Bach Hoa Xanh has been recognized by several analyst groups. In a recent report, Bao Viet Securities (BVSC) praised Bach Hoa Xanh's cost control and reduction in product waste. The analysts believe these measures will improve the chain's profit margins.

Regarding WinCommerce, Agribank Securities (Agriseco) noted that new stores opened since the beginning of the year have been profitable. This suggests that the chain's model has entered a phase of operational optimization while maintaining high growth.

Tat Dat