NTUC FairPrice Co-operative Limited (FairPrice) and Saigon Union of Trading Co-operatives Limited (Saigon Co-op) officially opened their first joint venture store in Ho Chi Minh City earlier today called Co.opXtra Plus – a new hypercash retail format, the first for both FairPrice and Saigon Co-op.
Mr Tan Kian Chew, Group CEO, NTUC FairPrice, said at the opening ceremony, “We view this joint venture as mutually beneficial for both Singapore and Vietnam. For Vietnam, we will introduce more varieties of products at affordable prices. Similarly, a more diverse range of Vietnamese products, like rice, seafood and fresh produce, will also be made available to Singapore consumers. Through our partnership, we will leverage on each other’s expertise. We will reap greater economies of scale in our purchases, optimise operational efficiency by improving productivity, and pool our resources to further diversify our food sources.”
Located in the Thu Duc District, half an hour from downtown Ho Chi Minh City, the 10,000 square-metre store offers a wide range of some 50,000 varieties of products sourced from Vietnam and from all around the world, which includes groceries and produce, seafood, household appliances, electronics, hardware, sports equipment, casual wear and FairPrice housebrand products.
The hypercash retail format will enable the store to serve both consumers and business-to-business (B2B) customers. B2B customers can purchase products in cartons and enjoy bulk discounts, while enjoying free delivery and credit terms. Shoppers can also enjoy greater savings by purchasing multi-pack items instead of single purchases to further stretch their dollar.
Similar to FairPrice’s uniform pricing policy for supermarkets in Singapore, prices of products at Co.opXtra Plus will also share the same price points with products offered by Co.op Mart – Saigon Co-op’s own existing chain of supermarkets – to ensure essentials are priced affordably for consumers in Vietnam.
The new Co.opXtra Plus store also features an entertainment centre for kids, a food-court, car and motorcycle washing services, shoe shine and repair services, and laundry services.
The two co-operatives entered the joint venture agreement in December 2010 to set up a chain of stores in Vietnam. Following the opening of the first store, FairPrice and Saigon Co-op will be looking to introduce both Co.opXtra hypermarkets and Co.opXtra Plus hypercash stores to various areas in Vietnam. FairPrice holds a 36 per cent share in this joint venture while Saigon Co.op holds 64 per cent.
The first Co.opXtra Plus is located at 934 National Highway 1A, Linh Trung Ward, Thu Duc District, Ho Chi Minh City, Vietnam.