FairPrice recommits to social commitment to provide affordable essentials through new store format
FairPrice Shop will carry new exclusive housebrand line, Value Fresh, comprising fresh produce that are more affordable than existing housebrand range
Singapore, 1 July 2016 – NTUC FairPrice (FairPrice) today officially launched a new retail format, FairPrice Shop, to better serve the needs of budget-conscious shoppers by providing greater value for daily essentials. The store will feature a more focused range of products that offer greater value, including a new exclusive range of housebrand produce, and will be located primarily within mature estates for greater accessibility and convenience to budget-conscious residents.
Mr Seah Kian Peng, CEO of NTUC FairPrice, commented: “As a retailer that makes lives better for the community, we have launched various retail formats over the years to cater to the changing needs of our customers. We mark another significant milestone with the introduction FairPrice Shop, a basic, no-frills supermarket retail format, which will focus on better catering to budget conscious shoppers. These stores will provide even greater value for daily essentials and will be conveniently located in districts where there is a higher concentration of low-income families residing. This new format will complement our overall efforts to moderate the cost of living while also remaining relevant to the evolving needs of customers from all walks of life.”
FairPrice Shop will provide a more focused range of essentials that provide greater value including housebrand products, Every Day Low Price (EDLP) and Yellow Dot items, which will make up about half the product mix in the store.
A new housebrand range of produce, called ‘Value Fresh’, will also be launched and available exclusively at FairPrice Shop. The new range of 30 products comprising fresh vegetables are priced at five to 10 per cent lower than FairPrice’s existing range of housebrand produce, ‘Pasar’.
The format, which is characterised by its no-frills display and layout, will also showcase and communicate more prominently various ways shoppers can save at the store and stretch their dollar.
To provide greater convenience and accessibility, the stores will be strategically located in matured HDB estates where there is a higher concentration of one to three-room HDB flats. The first two FairPrice Shops are currently located at Eunos and Circuit Road. FairPrice targets to open four more FairPrice Shops by the end of this year.
The introduction of FairPrice Shop is also in line with the collective efforts of NTUC Social Enterprises to address the concern of cost of living, as outlined in its 10-year plan to address the evolving social needs of Singaporeans. (More details in Appendix A)
Providing affordable essentials to make lives better
In a survey of 400 participants conducted late last year to better understand the needs of lower-income households, it was found that convenience (78%) is a key priority in choosing where to shop, followed by reasonable prices (64%) and freshness of foods (61%). Convenience was defined as being in close proximity to home, which translates to savings on travel costs. These attributes form the core values that FairPrice Shop seeks to provide.
In a separate survey of 1,000 participants last year to understand public expectation of a socially responsible organisation, it was revealed that the top three preferred initiatives that organisations can do to be socially responsible include providing affordable products and services (56%), moderating the cost of living (42%) and providing rebates (38%). In relation to this definition, seven in 10 spontaneously named FairPrice as an organisation that is socially responsible for adequately fulfilling these attributes.
InServing customers better through different retail formats
FairPrice Shop is the latest addition to FairPrice’s existing stable of five other supermarket formats, which cater to different market segments: FairPrice supermarkets reach the general population with its range of groceries and essentials; FairPrice Finest provide a more cosmopolitan and premium selection for the mass affluent; FairPrice Xtra hypermarkets provide families with a one-stop shopping experience from groceries to electronics and general merchandise; FairPrice online provides online grocery shopping convenience; and Warehouse Club is a membership based warehouse format that provides greater savings through bulk buys and discounts.