AEON exits Thailand’s supermarket business, focuses on Vietnam

AEON exits Thailand’s supermarket business, focuses on Vietnam

According to Nikkei, AEON will sell its supermarket business in Thailand to Central Group as the Japanese retailer shifts its focus towards other key markets such as Vietnam.

Under a plan announced on August 9, all shares in AEON Thailand, which operates the supermarket business, will be transferred to Central Food Retail on September 30. The value of the deal was not disclosed.

Following the transaction, AEON will fully withdraw from the supermarket business in Thailand. Central Food Retail operates the Tops supermarket chain, as well as convenience stores and premium supermarkets, mainly in Thailand.

AEON entered the Thai market in 1984. The Japanese group currently operates 30 supermarkets in the country under the MaxValu and smaller format MaxValu Tanjai brands.

Around 1,300 AEON employees in Thailand are expected to retain their jobs following the transfer of the supermarkets to Central Group. Despite exiting the supermarket business, AEON will continue to operate in other sectors in the country, including the Tsuruha pharmacy chain, entertainment facilities, and financial services.

At its peak in 2016, AEON operated around 80 stores in Thailand. However, increasingly polarised consumer preferences have driven stronger demand for both premium and discount retailers, making it more difficult for AEON to differentiate itself and compete with local rivals.

AEON is stepping up efforts to improve capital efficiency and profitability. Going forward, the group is expected to focus its growth on key markets, including Vietnam, where its shopping centres have been performing well. It will also concentrate resources on markets such as Malaysia, Cambodia, and Indonesia.

Photo: AEON Vietnam

In mid-July, AEON Vietnam general director Tezuka Daisuke said there remains significant room for growth in Vietnam’s retail sector. According to the company, modern retail currently accounts for only around 15 per cent of the total retail market, well below approximately 50 per cent in Malaysia, highlighting the substantial potential for further development and modernisation.

In Vietnam, the Japanese retail group currently operates eight shopping malls, 15 general merchandise stores and supermarkets, including compact formats, 45 mid-sized supermarkets, and hundreds of convenience stores.

Under AEON Group’s medium-term strategy for 2026–2030, Vietnam has been identified as the group’s top-priority market for investment in Southeast Asia. AEON plans to allocate up to 60 per cent of its total ASEAN investment budget to Vietnam, with the aim of tripling the scale of its operations in the country.

VIR