The Parkson store on Le Thanh Ton street in District 1 of Ho Chi Minh City is now in poor performance. (Photo: Le Toan)
The store, which opened in 2005, began repairs in April 2019, and plans to restructure each of its designated departments spanning multiple floors.
Parkson explained, “After the renovation, Parkson Saigon Tourist Plaza will present its new look and introduce to customers a new shopping experience, all facilitated with modern amenities and high-standard services.”
The Management Board of the company, which has over 120 department stores throughout Asia, confirmed that its business partners had agreed on an appropriate arrangement for the reconstruction. The department store is set to remain partially open for business throughout the regenerative process.
Parkson hopes that by restructuring its Ho Chi Minh City store, it will provide a more streamlined shopping experience and new products that reflect the company’s adaption to current trends.
The new store has plans to “Showcase a series of well-known brands in fashion, beauty and lifestyle categories, including highly prestigious products making their debut in Vietnam,” the company claimed.
The store’s renovation was considered an important target in its development strategy in Vietnam, 14 years on from its first operation in the country.
“Parkson Saigon Tourist Plaza will be the first store to be renovated, other stores will follow after this,” said the retailer.
At the peak of its operations in Vietnam, 10 Parkson department stores could be found across the country. Due to financial difficulties, however, only five remain.
The company had large ambitions in Vietnam, which has been one of the most promising retail markets in Asia in recent years. At the launch of its first store in 2005, Parkson Saigon Tourist Plaza reached 90 per cent occupancy within its doors.
However, within a decade, Parkson had fallen out of favour with the Vietnamese population and in 2015, the retailer was forced to close one of its stores. Keangnam Hanoi Landmark Tower was the first to cut its losses and signalled the start of many store closures for the company. The following year Parkson Paragon in District 7 of Ho Chi Minh City closed its doors, trailed months later by Parkson Viet Tower in Hanoi in December 2016.
Parkson Flemington in District 11 followed suit in March 2018 and, in October of the same year, Parkson was hit with its most recent forced closure at Parkson Cantavil in District 2.
Two existing stores, Parkson CT Plaza and Parkson Hung Vuong, are now showing signs of degradation, dilapidated construction, and failing facilities. Parkson TD Plaza Haiphong and Parkson Vinh Trung Plaza Danang, opened in 2007 and 2015 respectively, are receiving fewer visitors.
The fall of Parkson can be attributed in part to the rise of lifestyle centres in Vietnam, which offer diverse commercial development through an amalgamation of traditional retail functions and leisure amenities. These include combined restaurant, cinemas, and fashion spaces that cater to the demands of every customer.
Parkson Retail Asia, the parent company of Parkson in Vietnam, has also been reporting losses. The retailer recorded a negative sales performance for the fourth quarter and the full year ending June 30, 2018.
