Recently, Nielsen Vietnam conducted a survey of 800 traditional store owners and found that many do not feel confident about their profits in the next 12 months.
VnExpress shared that the Vietnam Retailer Confidence Index Level Q1 2018 Report found that the number of grocery store owners worried about a downturn in their market has increased by 8% from last year. A full 52% of the 800 surveyed store managers are not optimistic about business over the next year.
This study offers something of a paradox, as other data shows that Vietnamese consumers are very optimistic about their financial status. In previous findings, VnExpress reports in another article, Vietnam's consumer confidence index reached a new all-time high this year of 124 points, which is among world’s most positive.
It seems that consumer optimism regarding their financial status does not necessarily lead to an increase in their spending on traditional groceries, Nguyen Anh Dung, head of Retail Measurement Services of Nielsen Vietnam, explained to the news source.
The study also stated that consumers are shifting away from traditional grocery stores. Dung noted that Vietnamese consumers are now pumping money mostly into bigger expenses such as travel, hotels and cars. According to Vietnam News, many traditional stores are failing to operate efficiently since they often don't meet prevention, food safety and hygiene standards.
[Photo via COSP]
