Giant has shuttered 11 stores in 2024, the latest being its Paya Lebar Square supermarket on Nov 24. — The Straits Times
SINGAPORE: When supermarket chain Giant closed an outlet in Bishan in August, it set tongues wagging that the business was streamlining its operations amid rising costs and cut-throat competition.
Speculation grew after rival chain Sheng Siong immediately took over the vacated retail space in Block 512 Bishan, opening a new supermarket outlet within a month. Days later, a FairPrice store at Block 510 reopened after renovations.
In 2024 so far, 11 Giant stores have closed, the latest being its Paya Lebar Square supermarket on Nov 24.
Besides the Bishan and Paya Lebar outlets, others that have closed include a hypermarket in Sembawang, and supermarkets in Ang Mo Kio and Toa Payoh, as well as several smaller express stores in areas like Pasir Ris and Punggol.
But the supermarket chain said it has no plans to reduce its presence here, despite rising inflation and intense competition.
“Giant is a brand Singaporeans are familiar with. We have long-term plans to grow alongside our customers in Singapore,” said Yoep Man, managing director for food at DFI Retail Group (DFI) in Singapore.
The Singapore-listed company owns and runs Giant, as well as three other supermarket chains targeting different segments of the local market – Cold Storage, CS Fresh and Jason’s Deli.
Yoep noted that each of the brands has a different proposition and plays a different role in supporting the group’s long-term growth in Singapore.
“We want to tap the whole Singapore market, and we cannot do it with one brand. We need to have different brands to serve different purposes.”
DFI also owns a stake in yuu Rewards Club, an artificial intelligence-driven loyalty programme backed by Temasek. This allows DFI to optimise revenue by tapping data generated by more than 1.8 million Singapore members.
The data has shown that shopper preferences are evolving as demographics change and grocery options increase across Singapore.
Every location has a unique customer mix that evolves over time, Yoep said, so each new supermarket outlet under DFI’s stable is launched and located strategically.
For example, areas once heavily populated by expatriates such as River Valley and Holland Road are now seeing a shift in customer mix, as more employment pass holders take up accommodation options in estates like Siglap, Joo Chiat, Clementi and Serangoon.
That means opening the right supermarket brand with products and price points that serve the needs of the area, as well as closing stores that no longer meet the demands of an evolving catchment.
Cold Storage caters to middle-income families in the heartland, while CS Fresh outlets are located in trendier estates such as Bukit Timah, Holland Road, Orchard Road, Joo Chiat and Siglap.
Targeted at tourists and business executives, Jason’s Deli is located in high-end malls like Marina Bay Sands and Ion Orchard, Yoep said.
Giant, meanwhile, is for the majority, and is located mainly within Housing Board estates. In Bishan, rentals have increased while the number of loyal Giant customers dwindled.
“What we saw over the years were customers coming in only for the promotional items,” said Yoep.
He added that despite continued promotions, the number of loyal customers remained flat, while overheads increased, making the business unsustainable.
“That led to our decision to exit Bishan to focus on catchment areas where our stores have the opportunity to trade up and where we are still able to modify our product assortment to capture the market.”
While 11 Giant outlets have been closed in 2024, DFI has opened five new supermarkets under its brands.
They are CS Fresh in Chancery Court and New Bahru, Cold Storage in Pasir Ris Mall and Suntec City, and Giant in Tengah Plantation Plaza, which is the first and only supermarket in Tengah’s Plantation Village.
Some supermarket outlets, including Giant in IMM in Jurong East and Simei MRT station, and Cold Storage in Tampines 1, have been upgraded to appeal to customers — The Straits Times/ANN
