Vietnam’s Masan Group plans to open at least 50 new WIN retail stores, which will include its Phuc Long Coffee & Tea chain kiosk format, by the end of 2022
Phuc Long opened 15 stores during its third quarter with 30 further outlets slated to open before the end of the year | Photo credit: Phuc Long Coffee & Tea
Vietnamese retail conglomerate Masan Group plans to expand the kiosk presence of Phuc Long Coffee & Tea within its developing WIN store network.
In September 2022 Masan Group launched its WIN retail ‘ecosystem’ which integrated the company’s WinMart+ convenience store format with its other businesses, including coffee chain Phuc Long Coffee & Tea.
In the three months to 30 September 2022, Masan Group opened 30 WIN stores. The company said the concept increased sales by over 20% in the quarter compared with the earlier grocery-only model.
Alongside planning to scale the concept to approximately 80-120 WIN stores by the end of 2022, Masan Group said it will focus on developing ‘a winning model’ for its Phuc Long kiosk model inside WIN outlets.
Masan Group said Phuc Long kiosks inside the first wave of WIN stores contributed to daily revenue growth of 116% compared to kiosks in its standalone WinMart+ stores.
Phuc Long opened 15 stores during its third quarter with 30 further outlets slated to open before the end of the year. Masan Group is seeking to improve Phuc Long’s revenues and profits in the fourth quarter of 2022 ahead of ‘hyper-scaling’ of the Vietnamese coffee business next year.
In the first nine months of 2022, Phuc Long achieved revenues of VND1.1trn ($46m). Its standalone stores achieved sales of VND761 billion ($30.6m).
Masan Group first acquired a 20% stake in Phuc Long in May 2021 for $15m. The company increased its stake in Phuc Long Coffee & Tea to 84% in August 2022, taking the chain’s value to $453m.
“We have delivered on our Point of Life innovation with 30 WIN stores rolled out in the third quarter and we are confident that the WIN concept is a winning, scalable model. Next, we will launch a retail concept catering to rural consumers and unveil our membership programme with the end goal of personalising daily offerings for 100 million consumers. With our scale and innovations, I believe our growth trajectory is just in its early phase,” said Nguyễn Đăng Quang, Chairman, Masan Group.
Based in Ho Chi Minh City, Masan Group’s total revenues for the first nine months of 2022 reached VND55.5trn ($2.2bn).
Alongside its retail stores and Phuc Long outlets, Masan Group also operates Masan Consumer Holdings, one of Vietnam’s largest local diversified FMCG companies, meat product platform Masan MEATLife, and joint stock commercial bank Techcombank.