SINGAPORE, 22 March 2017 – NTUC FairPrice (FairPrice) today announced their target to open another six FairPrice Shop stores this year, in addition to the six that have opened since the new format was launched last year. The store has seen rising demand for its format which caters to budget-conscious customers, by offering a focused range of products with greater value compared to regular supermarkets.
Mr Seah Kian Peng, CEO, NTUC FairPrice said: “The FairPrice Shop format was introduced as a basic, no-frills supermarket that is conveniently accessible to serve the needs of budget-conscious shoppers. Located in mature estates, the format has been well-received by residents. We plan to increase the number of FairPrice Shops so that more people will benefit from it. This is one of the ways FairPrice serves its role as a social enterprise by ensuring that essentials remain affordable to help address issues on the rising cost of living.”
The format was officially launched in July last year, with two FairPrice supermarkets in mature estates converted to FairPrice Shop formats. After their conversion, these two supermarkets saw an eight per cent increase in sales from 2015 to 2016. Following their success, FairPrice launched another four FairPrice Shop stores last year.
FairPrice and Budget branded housebrand products are the top choice for customers at FairPrice Shop stores, contributing about 15 per cent of sales; this is followed by the Pasar and Value Fresh branded housebrand range of fresh products, which makes up almost 10 per cent of sales.
Mr Ng Koon Yong, 72, who lives across a FairPrice Shop in Eunos Crescent, said, “It is very convenient to have a FairPrice store nearby where we can easily pick up groceries. After they renovated and changed it to FairPrice Shop, they started carrying a wider variety of their own FairPrice branded products; I was quite surprised by the quality even though they are cheaper than the usual brands. I’ve been a customer for many years and it is good that they continue to ensure groceries remain affordable.”
FairPrice Shop stores offer a focused range of essentials that provide greater value including housebrand products, Every Day Low Price (EDLP) and Yellow Dot items, which comprise about half the product mix in the store. ‘Value Fresh’ is also exclusively stocked at FairPrice Shop stores. This housebrand range which includes 30 types of fresh vegetables is priced at five to 10 per cent lower than ‘Pasar,’ FairPrice’s existing range of housebrand produce.
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 provides 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.