ANTD.VN - The total revenue of the Mobile World (MCP: MWG) and Dien May Xanh chains in the first 11 months of 2023 was 76.7 trillion VND, down 21% over the same period last year. This retail system said it will continue to comprehensively restructure.
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Mobile World restructures strongly to overcome market difficulties |
According to a representative of Mobile World, the comprehensive restructuring process of this enterprise is still continuing in all aspects of the company from the store block, purchasing block, warehouse to support departments.
"This process will certainly cause many changes, however, the company is forced to do so in order to escape the unfavorable market situation in 2023, aiming for 2024 to increase revenue, market share and strongly improve profits" - Information from Mobile World said.
Accordingly, Mobile World focuses on maintaining core activities, chains, stores, and product lines that create value for the company now or in the near future. In addition to reviewing and eliminating waste, the company will stop unnecessary activities and postpone investment in medium and long-term R&D projects during this period.
The Gioi Di Dong also reallocates all resources (leadership, stores, employees, finance, etc.) to ensure business focus and efficiency, and resolves resource surplus issues arising from restructuring in a reasonable manner.
“The company is also ready to reinvent and change its business methods to meet the actual needs of customers in the new business context,” said a representative of Mobile World.
The BHX, An Khang and AVAKids chains have completed the review of store closures in November. Thus, the number of stores at the end of November of these chains will remain stable from December 2023. For the The Gioi Di Dong, Dien May Xanh and Topzone chains, the company closed nearly 150 stores in October and November (compared to the end of the third quarter) and will continue to close some stores with poor performance in terms of revenue and profit in December to stabilize operations, preparing for the peak sales season during the 2024 Lunar New Year.
Regarding the costs related to store closures in Q4, they will be fully reflected in the results of 2023, so these costs will not affect 2024.
Like many companies today, facing declining demand and purchasing power, Mobile World has actively embarked on a restructuring process to streamline its organization, with the aim of helping the company adapt quickly and be more resilient to the volatile market.
The November 2023 report recorded MWG's total revenue at VND9.9 trillion, equivalent to November 2022. In the 11 months, the TGDĐ and Dien May Xanh chains had a total revenue of VND76.7 trillion, down 21% over the same period last year.
In November alone, the total revenue of Mobile World and Dien May Xanh reached more than 6.5 trillion VND, down from October mainly due to the cooling demand for iPhones after the peak of new product launches. Despite the poor market performance, Mobile World and Dien May Xanh still recorded positive growth in sales and revenue for iPhones in the first 11 months of the year compared to the same period last year thanks to the strong increase in Apple's market share since the beginning of the year.
Regarding the Bach Hoa Xanh chain, cumulative revenue in the first 11 months of the year reached VND28.4 trillion, up 16% over the same period in 2022. Bach Hoa Xanh's revenue in November alone was more than VND3 trillion, up 35% over the same period. Average store revenue reached VND1.75 billion/month.
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