Chairman Nguyen Duc Tai: The “headwind” of 2022 is an opportunity for TGDD, reviewing and streamlining the system, ending testing with no potential

In the general context of many fluctuations and unfavorable conditions after Covid, Mobile World has experienced a challenging year 2022, including the subjective reason of the decision to drastically restructure to operate the planet. more compact and efficient.

The company recorded a net revenue of more than 133,400 trillion dong and maintained a profit after tax of more than 4,100 billion dong, corresponding to an 8% growth in revenue and a 16% decrease in net profit over the same period in 2021. For the first time since listing, MWG has only completed 95% of the revenue target and 65% of the profit target compared to the plan.

However, Chairman of the Board of Directors Nguyen Duc Tai said that the “headwinds” in 2022 are an opportunity for the Company to focus on reviewing business activities and strengthening the internal resources of the business.

As a retailer with a revenue of $5.5 billion and a network of more than 5,500 stores nationwide, experimenting with new business models is not out of goal to create a growth engine for TGDD in the future. future.

But every experiment will have success and failure.

TopZone and DMX Supermini Chain are two of the successful experiments of TGDD. Accordingly, TGDD’s revenue growth in 2022 has a significant contribution from the DMX Supermini chain – a model of micro electronics stores serving the shopping needs of people in remote and remote areas – with more than 10,000 billion revenue from more than 1,000 points of sale after just over 2 years of testing.

At the same time, 2022 also marks the initial success of TopZone – a chain of genuine authorized stores specializing in selling Apple products in Vietnam. Launched in October 2021, TopZone contributes more than VND 2,600 billion in revenue from 100 points of sale. Along with the success of TopZone, the total revenue from Apple products across the MWG system also increased impressively by about 40% compared to the previous year.

Both thegioididong.com and Dien May Xanh chains strived to record double-digit growth over the same period, bringing in total revenue of VND105,000 billion for the Group.

Besides the things that have been done, the Board of Directors also frankly acknowledges the things that have not been done well, the adjustments that need to be made to survive and adapt to the rapidly changing business conditions, the obstacles must be strong. strongly cut so that the Company can continue to go further, more sustainably.

In particular, the retail chain of food and consumer goods Bach Hoa Xanh has undergone a comprehensive “big surgery”, including:

– Repositioning the brand from a “modern market” model to a “mini supermarket” and changing the store layout so that customers have a more comfortable and convenient shopping space.

– Focus on improving the quality of products and services to create a better experience for customers;

– Review and completely deal with stores that are in the wrong location, inefficiently operating;

– Strengthening the operating platform towards drastically improving operational efficiency. After restructuring, with 1,728 stores operating at the end of 2022 (down nearly 20% compared to 2021), the average revenue in the last months of the year is stable at 1.3-1.4 billion VND/store.

By the end of 2022, Bach Hoa Xanh’s total revenue still reached more than VND 27,000 billion, equal to 96% of the record revenue of 2021 (when the need to stock up on essential goods increased during COVID-19 outbreaks).

As for An Khang , after reaching the scale of 500 pharmacies by the end of 2022, the Company has paused its expansion to focus on increasing revenue per point of sale, controlling costs, and aiming to operate profitably.

In addition, MWG also shrinks new chains, ending those experiments that do not have large enough growth potential in the future.

Finally, Chairman Nguyen Duc Tai said that each success or failure brings profound lessons and valuable experiences to help the successor leadership team stay alert, cautious and disciplined in their decisions.