Singapore, 4 November 2022 – Ahead of the implementation of Goods & Services Tax (GST) increase in Singapore, NTUC FairPrice (FairPrice) has announced that it will be offering discount on 500 essential items for the first six months of 2023. This initiative will apply across all FairPrice supermarket retail formats, including FairPrice Online.
The basket of 500 key essential items is selected based on items that customers purchase frequently and serves the top-of-mind needs of customers. They comprise national brand and housebrand items such as fresh fruits, vegetables and meat, staples, dairy, paper products, detergents and household cleaners.
This announcement was preceded by a recent initiative FairPrice took to lower the prices of popular rice products despite cost pressures as rice-producing countries experienced a shift in outputs due to climate change. Earlier this year, FairPrice also took the lead to provide a 10 percent discount on four popular cooking oil products to address concerns on elevated oil prices, as well as providing a special discount for its Pasar fresh eggs (30s) in view of rising egg prices. By taking the lead in these initiatives, FairPrice plays a key role in benchmarking prices in the industry.
Mr Vipul Chawla, Group CEO, FairPrice Group, said, “Moderating the cost of living has always been our core focus and we are stepping up our efforts to further support our customers amidst the current uncertain economic climate and rising inflation. Providing the discount to offset the GST hike is one of multiple strategies we have in place to ensure the community continues to have access to affordable daily essentials.”
Some of the strategies in place by FairPrice include diversification of sources where food is sourced from over 100 countries around the world. This seeks to protect consumers from price fluctuations, as it avoids over-reliance on any one source. FairPrice also introduced a new Greater Value Every Day campaign to address concerns over the rising cost of living and provide greater value every day to consumers. This enhanced discount scheme includes a price freeze of 50 popular daily essential products every month, and up to 50 percent off for Price Drop Buy Now items. Beyond this, FairPrice also offers a large stable of over 2,000 housebrand items that are priced 10-15 percent cheaper compared to national branded items. (Refer to appendix for more details)
Mr Vipul added, “We anticipate inflationary concerns will continue into 2023. To address this, FairPrice will put in place different schemes to help various segments of the community. FairPrice has journeyed with Singaporeans over the years and we will continue to enhance our efforts to moderate the cost of living as we mark our 50th Anniversary next year.”
FairPrice Group celebrates its 50th anniversary next year as it renews its social mission to moderate the cost of living in Singapore. More details will be shared early next year.
The start of the initiative will coincide with the implementation of the GST increase to 8% on 1 January 2023.
FairPrice had offered discounts to moderate cost when 3 percent GST was first introduced in 1994. During the last GST revision from 5 percent to 7 percent, FairPrice had also offered discounts to offset the 2 percent GST hike on 400 essential items from July to December 2007.
Appendix: Fact Sheet on FairPrice and Moderating Cost of Living Measures
FairPrice Group is the only supermarket retailer and F&B operator in Singapore with its own unique social mission to moderate the cost of living. In times of economic uncertainties, FairPrice Group would benchmark prices and keep food and daily essentials available and affordable.
On a continued basis, FairPrice works with suppliers and government agencies to ramp up food supplies, while exploring alternative sources from more countries. This diversification of sources helps to boost food resilience and is crucial in our efforts to moderate the cost of living. FairPrice had set up a Supply Chain Ops Centre (SCope) which provides end-to-end visibility and supply chain analytics, enabling the retailer to leverage on early warnings, real-time data and analytics to track shipments and inventory of its distribution centres and outlets islandwide. For example, if a shipment of goods experienced transport disruptions, SCope would enable FairPrice to take immediate actions to increase supplies from other sources.
Some schemes FairPrice has to help communities stretch their dollar are: