SINGAPORE, 13 September 2005 – ExxonMobil Asia Pacific Pte Ltd (“ExxonMobil”) and NTUC FairPrice (“FairPrice”) announced today their decision to extend the ExxonMobil-FairPrice retail Alliance to all 77 Esso and Mobil service stations in Singapore.
The decision follows the successful implementation of the pilot phase of the Alliance that began in November 2003 with six service stations. This Alliance between Singapore’s largest supermarket chain and largest petrol station network proves to be a winning formula for busy Singaporeans. Experience at the pilot sites has shown that 24-hour shopping convenience, coupled with a wider range of grocery products at competitive prices and good customer service, was welcomed by customers. A consumer research study was conducted during the pilot and the findings confirmed that having the Xpress Mart, with a wider range of products at the convenient service station location, was a key pull factor among customers at these pilot stores.
Mr S. Chandra Das, Chairman of NTUC FairPrice, said, “We entered into this collaboration with the view to bring our convenience stores and supermarkets to where the people are. At almost anywhere in Singapore, customers get what they want, when they want it and at attractive prices. The availability of EveryDay Low Price (EDLP) items and fresh food, typically found at FairPrice supermarkets, provide greater value to customers. Our strength in food supply chain and the economies of scale we bring to the Alliance help ensure prices will be the lowest among petrol marts in Singapore. Together with ExxonMobil, we offer customers the widest range of products, most competitive pricing and 24-hour shopping convenience at virtually every corner of Singapore.”
Mr Kwa Chong Seng, Chairman and Managing Director, ExxonMobil Asia Pacific Pte Ltd said, “The Alliance between ExxonMobil and FairPrice allows both parties to harness the scale of operations to be more efficient and better compete in a very competitive market. The Alliance is a step change in service station retailing in Singapore. It will provide a super shopping experience for both motorists and neighbouring residents at all Esso and Mobil service stations. During the pilot, residents in the East Coast, Macpherson and Bedok vicinity enjoyed the excellent convenience and shopping. It will now be available to the whole of Singapore. Esso and Mobil service stations will now have the ability to offer the best prices for both fuels and mart products – an unbeatable combination for the consumer.”
To increase the convenience quotient for customers and motorists, several new features will be introduced. Customers can look forward to accessing POSBank/DBS ATMs at all Esso and Mobil stations. In addition, FairPrice will be exploring the installation of more self-service machines, like SAM and AXS, at the busier stations. More parking lots will also be added for customers to do their grocery shopping. The conversion of the petrol marts into FairPrice Xpress and Cheers stores also means that customers now have more outlets to earn LinkPoints.
Under the Alliance, FairPrice will operate both the convenience stores and fuels facilities. ExxonMobil owns the fuels products and will remain responsible for the marketing and pricing of the fuels products. The plan is to convert all ExxonMobil convenience stores to either FairPrice Xpress or Cheers stores, depending on the size and location of each service station. Apart from the existing six pilot stores, the next new store is scheduled to open by January 2006. The rest of the chain will be fully converted within 18 months. With this Alliance, the number of Cheers stores, a wholly-owned subsidiary of FairPrice, will eventually double to 107. The FairPrice Group’s chain of stores will also see a significant growth from 136 to 207 outlets.
The Alliance brings together the two largest networks in their respective industries to create a step change in service station retailing here. Combining their respective strengths – ExxonMobil in quality motor fuels supply and marketing and FairPrice in supermarket and convenience store retailing, the Alliance offers customers a highly attractive retail combination of quality fuels and super shopping convenience with a wider range of fresh food and grocery items 24 hours-a-day, 7 days-a-week.
ExxonMobil operates the Singapore Refinery and Singapore Chemical Plant. Together they form our largest integrated manufacturing site in Asia. ExxonMobil is Singapore’s single largest foreign investor. ExxonMobil operates the largest network of 77 Esso and Mobil service stations in Singapore and is a major manufacturer and marketer of high quality lubricants.
The NTUC FairPrice Group operates the largest supermarket chain in Singapore with a current retail network of 136 outlets, comprising 76 FairPrice supermarkets, 1 Liberty Market, 3 Homemarts, 1 Foodland outlet, 3 FairPrice Xpress and 52 Cheers convenience stores.