FPT Shop will sell more motorbikes, bicycles, spare parts, maintenance and repair of motorcycles besides watches, home appliances…

In the first quarter of 2023, according to many businesses’ observations, purchasing power decreased more than expected. If at the end of last year, only people with average incomes and below tightened their spending, now people with money have also started to “measure and measure” in purchasing non-essential goods and high-value goods. Not to mention, the group of installment customers also fell sharply due to the increase in interest rates.

This began to affect the operation of ICT enterprises. In the latest announcement, Mobile World (MWG) announced that it will have to trade profits to retain customers. However, this “big man” could not maintain the double-digit growth rate as usual.

In contrast, FPT Retail (FRT) still has a target of 13% growth in revenue, expected to reach a new peak of 34,000 billion dong. The target was given in the context of many difficulties and challenges, especially from the FPTShop chain when the demand for ICT products continued to decline sharply and it was difficult to predict the recovery time.

Of course, double-digit growth is challenging. Accordingly, FRT said that besides traditional products, the Company also gradually expand the product portfolio according to the shop-in-shop model .

That is, taking advantage of the existing premises, in 2023 FRT will start selling a series of new industries such as selling motorcycles and motorbikes; maintenance and repair of motorcycles and motorbikes; selling spare parts and auxiliary parts of motorbikes and motorbikes; retail sale of bicycles and spare parts in specialized stores; repair of bicycles, watches, other personal and household goods, not elsewhere classified.

In 2021, the Company tested this form (household sales) and recorded a positive signal. Up to now, the number of FPT Shop stores selling household goods has reached more than 300 stores, it is expected that by the end of 2023, this number will increase to 600 stores.

This not only helps increase revenue, but according to FRT, it also helps the Company to improve gross profit step by step. This form is not new, in fact, it has been applied by MWG many years ago and has brought stable revenue so far.

Particularly for FRT, the expansion of the catalog on the number of existing stores can also be considered as new experiments of the Company. Once remembered, the leader, Ms. Nguyen Bach Diep, said that after learning from past experiences, when the ICT segment was saturated, FRT did not have a new segment and declined sharply (in the period of 2018-2020), the Company tested every year. parallel new segments to promote Long Chau. In which, FRT’s tests can be reviewed such as cross-border sales of Fado, shaking hands with Nguyen Kim to sell electronics, home appliances, etc.

Particularly in the pharmaceutical segment, Long Chau after 5 years has achieved certain success: the largest number of stores in Vietnam, a profit of more than 53 billion dong in 2022. In 2023, the company plans to open at least 400 more stores drugs, bringing the total number of pharmacies at the end of 2023 to 1,400 – 1,500 pharmacies.

With the above long-term vision, FRT also invests in building warehouses. In 2023, the Company said that it will build a second warehouse in Long An after completing the construction of the first warehouse in Me Linh (Hanoi), focusing on optimizing cash flow, ensuring liquidity for customers. the Company as well as to meet the capital source for the expansion of the Long Chau chain.