Retail Is Growing—So Why Are Stores Still Closing? What Central Retail and AEON Reveal About Vietnam’s Polarised Consumer Market

©Central Retail

Vietnam’s retail sales of goods and services increased 13.1% nominally and 7.5% in real terms during the first seven months of 2026. Yet long-established stores continue to close and some shopping locations lose relevance. In contrast, Central Retail continues to prioritise Vietnam, while AEON MALL opened its eighth Vietnamese mall and its first in Da Nang.

Market growth is not distributed evenly. Consumers evaluate price together with distance, assortment, food, entertainment, trust and membership benefits. The unit of competition is shifting from the individual store to the full shopping and lifestyle journey.

1. Consumer growth does not guarantee store growth

©Central Retail

Real retail growth of 7.5% points to stronger purchasing power, but e-commerce, convenience stores, minimarts, malls and specialty retailers compete for the same wallet. A category can expand while an individual location declines when its format no longer fits daily routines.

Leaders should add catchment population, visit frequency, basket size, cross-purchase, online-influenced sales and repeat visits to market-growth data. A destination store and a neighbourhood replenishment store have different jobs and should be judged differently.

2. Central Retail is combining large and small formats

©Central Retail

At the end of 2025, Central Retail operated 127 stores across 26 Vietnamese provinces, with Vietnam contributing 20% of group sales. Its 2026 roadmap included two GO! malls, one GO! hypermarket and six mini go! stores.

The lesson is not simply to open more locations. The company uses different formats for different catchments and shopping frequencies. New-market entry is more resilient when format varies with city maturity instead of imposing one national store model.

3. 4.3 million members form a demand sensor, not a discount list

©Central Retail

The 1 membership base in Vietnam exceeds 4.3 million. Its value goes beyond voucher distribution. Linking purchase history, store and online behaviour reveals regional demand, product affinities and early signs of churn.

Central Retail is working toward a unified view of online and offline customers. Smaller businesses can apply the same principle by standardising phone numbers or membership IDs and measuring the second purchase after the first transaction.

ALIVE Vietnam supports companies in Vietnam with marketing strategy, branding, websites, UI/UX, content, video and measurement. Talk to our team even if you are still defining the problem and priorities.

4. AEON MALL Da Nang signals the rise of regional cities

©JETRO

AEON MALL’s eighth Vietnamese location is its first in Da Nang. Major retail investment is moving beyond the Hanoi and Ho Chi Minh City regions. The opportunity depends on recurring demand from local residents, not only opening publicity or tourism.

Regional expansion requires a national brand to act locally. Tenant mix, food, events, language and family services should reflect the catchment so initial attention turns into repeat visits.

5. The physical store is becoming a media channel

©JETRO

Growing stores combine products with food, experience, advice, fulfilment and community. As consumers discover through social content, try in store and reorder online, separate offline and digital teams create increasing waste.

Store events can become short video, social response can inform merchandising, and post-purchase follow-up can run through Zalo or an app. Companies with this loop turn rent into content and customer data; those without it are left carrying rent and inventory alone.

Conclusion

Vietnamese consumption is growing, but that growth will not reach every store. Multi-format networks, membership data, local adaptation and online–offline integration favour expansion, while legacy location and awareness alone become weaker assets. Before adding outlets, retailers should redefine the store as a lifestyle touchpoint, a media channel and a source of customer learning.

ALIVE Vietnam supports companies in Vietnam with marketing strategy, branding, websites, UI/UX, content, video and measurement. Talk to our team even if you are still defining the problem and priorities.