VietNamNet Bridge – Big sale programs are being run at all the stalls of Trang Tien Plaza prior to its renovation, just 16 months after it resumed operation in April 2013.

Prior to that, it underwent a restructuring after it changed hands to a new investor, who reportedly poured VND400 billion to renew it.

Considered a commercial symbol of the capital city over the last 100 years, any changes with Trang Tien Plaza would draw the public’s attention.

The shopping mall, called Godard House when it was established in the French colonial period, was the general department store which served French people and only a few rich Vietnamese.

In 1959, the department store began a new operation period, and was put under the management of the state. It then became the biggest department store in Hanoi and the northern region and the destination point for all visitors to Hanoi.

The department store entered a new period of development when it opened again in April 2013 as Trang Tien Plaza, which targets high income customers.

At that time, some analysts commented that it would be a blunder for the investor to target high income earners, warning that luxurious goods would be unsalable in the economic recession.

And now it is now facing another restructuring process.

Nike, Mango, Gap and Versace products are being sold at a discount of up to 50 percent at the shopping mall. Other well-known brands have slashed prices as well.

However, despite the attractive discounts, the stalls at Trang Tien Plaza are still deserted. People only go to Trang Tien to window-shop or take pictures, and don’t intend to buy luxury items there.

“A handbag displayed here has the initial price of VND20 million. With the 50 percent discount rate, it is sold at VND10 million. But it is still unaffordable for me,” said Thu Ha, an office worker from Dong Da District.

At footwear stalls, a pair of shoes is sold at tens of millions of dong, without the reach of Hanoians who have an average income of VND53 million per annum.

Middle-class cosmetics stalls and snack bars are the only bustling places at Trang Tien Plaza.

Thu Mai, a saleswoman at a high-end fashion kiosk, admitted that the shopping mall is deserted on workdays and only gets more bustling on weekends.

High selling prices are the main reason that keeps buyers away. Located on the most advantageous position in Hanoi, the retail premises rent is over $100 per square meter, or triple the average rent in the market.

A representative of Trang Tien Plaza Management Board said the retailers, after one year of doing business, are adjusting their business plans to optimize profits.

He said in the future, Trang Tien would offer a wider range of goods to serve a broader slice of society.

“At present, luxury items are dominant at Trang Tien. But after the restructuring, many new brands will be present here,” he said.

Kim Chi