Accordingly, from the end of 2023, the comprehensive restructuring process of Mobile World is still taking place in all aspects of the company from the store block, purchasing block, warehouse to support departments. This process will certainly cause many changes, but the company is forced to do it in order to escape the unfavorable market situation in 2023, aiming for 2024 to increase revenue, market share and strongly improve profits.
TGDĐ is currently facing difficulties in the retail market.
Specifically, 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.
In addition, Mobile World also reallocates all resources (leadership, stores, employees, finance, etc.) to ensure business focus and efficiency, and to reasonably resolve resource surplus issues arising from restructuring. In particular, the company is also ready to reinvent and change its business methods to meet the actual needs of customers in the new business context.
Currently, the Bach Hoa Xanh, An Khang Pharmacy 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 TGDĐ, Dien May Xanh and Topzone chains, the company has closed nearly 150 stores in October and November (compared to the end of the third quarter) and will continue to close some stores that are ineffective in terms of revenue and profit in December to stabilize operations, preparing for the peak sales season during the 2024 Lunar New Year.
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 VND9,900 billion, equivalent to November 2022. In the 11 months, the TGDĐ and Dien May Xanh chains had a total revenue of VND76,700 billion, down 21% over the same period. In November alone, the total revenue of TGDĐ and Dien May Xanh reached more than VND6,500 billion, down compared to October, mainly due to the cooling demand for iPhones after the peak of new product launches.
Regarding the Bach Hoa Xanh chain, cumulative revenue in the first 11 months of the year reached VND28,400 billion, up 16% over the same period. Bach Hoa Xanh revenue in November alone was over VND3,000 billion, up 35% over the same period. Average store revenue reached VND1.75 billion.
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