The Gia Dinh Post Office building on Phan Dang Luu Street (HCMC) has become a department store. The change took place a few days ago, making many people living in this area feel strange.

Inside the department store, according to VietNamNet reporters, the variety of goods is not really diverse, and there are not many customers.

However, the plus point of this model is that it combines providing traditional postal services such as express delivery, shipping, collection - payment... with consumer goods business in the same space.

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Ho Chi Minh City Post Office Department Store becomes a multi-utility transaction point. Photo: Tran Chung
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The new department store has a completely different look, replacing the familiar image of the former Gia Dinh Central Post Office. Photo: Tran Chung

This store is one of three “Postal Department Stores” recently opened by Vietnam Post Corporation (VietNam Post) in Ho Chi Minh City. Each store distributes nearly 2,000 product codes from 135 different brands. In 2025, VietNam Post plans to continue expanding its department store chain to about 300 stores in 26 provinces/cities nationwide.

VietNam Post’s move comes as traditional models are facing restructuring demands, while flexible, experiential and technology-integrated retail formats are on the rise. The success of the Postal Department Store model remains uncertain after the previous lackluster appearance of Postmart.

This is a chain of convenience stores deployed by Vietnam Post, combining the post office and retail models, appearing in a number of localities to take advantage of the network of more than 13,000 service points, including more than 8,000 Commune Cultural Post Offices stretching to villages and hamlets.

However, according to Savills Vietnam, contrary to concerns that e-commerce will completely replace physical retail, the reality shows that global consumers are returning to stores as a shopping - experience - interaction destination.

Savills’ Impacts 2025 report highlights that retailers around the world are recovering better than expected, with evidence from the US market. Nearly 80% of total consumer spending in the US is still done in physical stores, a significant proportion in the digital age.

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Some items for sale inside the post office transaction point. Photo: Tran Chung

In Vietnam, a report earlier this year by KIS Securities Joint Stock Company said that mini supermarkets will be the main driving force for modern grocery retail and the expansion rate of this type will be even faster in 2025.

According to the securities company, mini supermarkets are popular in countries where people have a high rate of motorbike ownership such as Malaysia, Indonesia, Thailand and Vietnam due to the convenience of transportation. However, in developed markets such as Japan or Korea, where large supermarkets are already connected to good infrastructure and public transportation, the convenience of mini supermarkets may not be clear.

Therefore, modern grocery retail in Vietnam still has a lot of room for growth because this channel currently accounts for only 12.2% of the grocery retail market value, compared to about 50% in Thailand and Indonesia, the report said.

What is the difference between a convenience store and a grocery store, and what are the criteria for? Ms. Nguyen Thi Minh Thao, Head of the Business Environment and Competitiveness Research Department, shared with VietNamNet reporters her perspective on the draft Circular regulating the classification and management of some types of commercial infrastructure.

Source: https://vietnamnet.vn/buu-dien-tai-tphcm-lot-xac-thanh-cua-hang-bach-hoa-doc-dao-mo-hinh-2-trong-1-2417504.html