Revenue declines, Q1/2024 continues to decrease by 21%

The economic recession has had a direct impact on electronics retail chains in 2023 as people tend to cut spending on this item. In Vietnam, not only Mobile World but also FPT Shop are facing difficulties, having to continuously close dozens of ineffective stores.

In 2023, FPT Shop's revenue will no longer contribute a large proportion to the FPT Retail ecosystem. The entire chain's revenue will only reach about VND 16,137 billion, equivalent to a 22% decrease compared to the same period.

Notably, FPT Shop's revenue has been increasing continuously over the past 6 years, and 2023 is the first year that the chain has recorded a decline in revenue. According to the company's explanation, the impact of the price war and macroeconomic factors have damaged its business results in 2023.

Entering the first quarter of 2024, the situation has not shown any signs of improvement, FPT Shop's revenue continues to decline to only VND 3,583 billion. Compared to the same period, FPT Shop's revenue decreased by 21% and only contributed 39% of FPT Retail's total consolidated revenue. Meanwhile, at the end of 2023, FPT Shop's revenue still accounted for nearly half.

According to FPT Retail's report, the FPT Shop chain has entered its fifth consecutive quarter of losses. In other words, FPT Shop is becoming a burden in FPT Retail's operating picture.

FPT Shop closes 56 more stores in the first 5 months of the year

Not only recording a sharp decline in revenue, FPT Shop also had to continuously close ineffective stores.

At the end of 2023, the number of stores in the entire FPT Shop chain recorded 755 stores. This included 27 F.Studio stores specializing in selling Apple products. Thus, the company closed 31 stores in 2023.

In the company's report, the number of closed FPT Shop stores was transferred to open the Long Chau chain to take advantage of the favorable location.

The closure of the FPT Shop chain will continue in 2024. By the end of May 2024, the number of FPT Shop stores remaining is 699 stores (including 34 F.Studio stores). Thus, in just over the first 5 months of the year, FPT Shop has closed 56 stores in the system.