SINGAPORE: Ongoing growth in Singapore’s supermarket sector highlights opportunities for New Zealand food and beverage companies in the market.
The number of supermarkets in Singapore has grown 40 per cent in the last five years, rising from 186 outlets in 2005 to 255 in 2010.
Currently estimated to be worth more than NZ$4 billion dollars, the fiercely competitive supermarket business is poised for further growth in 2011.
Examples include the Dairy Farm group’s plans to open 11 new cold storage outlets, bringing the total number to 50, and Sheng Siong’s move to add three to five more outlets to its existing 22 branches.
Singapore’s largest food retailer, NTUC FairPrice, is also growing to its network of more than 230 stores with at least two new outlets due to open in 2011.
Latest figures from market research firm Euromonitor International show FairPrice has 47.8 per cent of the market, based on retail value, followed by Cold Storage with 21.3 per cent and Sheng Siong with 18.2 per cent.
FairPrice, which was founded by the labour movement in 1973 to moderate the cost of living, recorded a profit of S$98.5 million (NZ$101.6m) in the year ending March 2010.
Its branches include FairPrice Xpress outlets in petrol stations and Cheers 24-hour convenience stores.
Singapore is New Zealand’s sixth largest trading partner, with two-way trade valued at more than NZ$3 billion a year and food and beverage accounting for more than half of our exports.
Singapore imports around 90 per cent of its food requirements.
Supermarket business is growing in response to customers demanding the convenience of having an outlet near their homes.
Competition is intense with rival outlets sometimes just a short trolley-push from each other.
Location is important but analysts say customers are also influenced by what stores offer in terms of product, ambience and service.
Cold Storage, for example, has introduced more than 500 lines from international brands to give its stores a point of difference while others are wooing customers by allowing them to handle fresh produce and choose the amount they want, or offering on-line shopping and home delivery.
Source: NZTE
