Yesterday, FairPrice also had relief for more than 6,000 staff members.
No one will be retrenched this year.
Instead, 500 more employees will be hired to fill the ranks at three new supermarkets to open this year in undisclosed locations.
It will also put 5,000 front-line employees through customer service training programmes at a cost of half a million dollars.
Not forgotten were some 100 small and medium-sized suppliers, who can expect payments twice as quickly this year from the supermarket giant.
Add to this increased funding to its trade union parent and more money from its charitable foundation to the community, and FairPrice is looking at commitments of $15 million this year, said chairman Ng Ser Miang.
In its stores, consumers will find reductions on 500 house brand items.
Soon they will have more of even cheaper goods to choose from, as the supermarket's buyers scour the world for 100 more items to expand its lowest- priced range.
These include Aro Soya Bean Oil at $2.95 a litre, and Care Goat's Milk Whitening Shower Cream at $2.95 for 1.2l.
This range of the supermarket's most affordable goods - named the yellow dot range for its distinguishing sticker on the shelf display price - will be extended to include other frequently used essentials.
They have been met by 'overwhelming response', said its director of integrated purchasing Tng Ah Yiam.
He noted that sales of Aro Soya Bean Oil have tripled since October last year when the range was launched, and that of Goat's Milk Whitening Shower Cream have doubled.
'This is an indication that during the downturn, people are looking for cheaper alternatives. We want to cater to this sector of the population,' he added.
The cooperative is also helping its smaller suppliers by cutting payment times from 60 to 30 days to ease cash flow and reduce dependence on loans.
Said Mr Ng: 'The crisis became bad in the last few months of last year, and discussions with suppliers started in September. We could see problems building up for them so we decided to come up with a way to help them.'
FairPrice will also increase its funding to NTUC, amounting to more than the $4.3 million last year, by at least half. Most of it will be used to help low-wage workers.
The FairPrice Foundation, the chain's new charity arm, will contribute at least 20 per cent more to the community this year. It gave $6.7 million last year.
In the meantime, consumers are looking forward to a wider range of budget items.
'This is great. It means I am not limited to just a few budget items when I want to save money,' said Mrs Stella Lim, 47, a mother of three.
Consumers have three tiers of lower-priced items to choose from.
First, 400 national brands - belonging to the Everyday Low Priced range - that are sold at the same price or lower than other retailers.
Second, 500 house brand products - including staples like bread, rice and cooking oil - tagged at 10 to 15 per cent lower than national brand equivalents.
Third, yellow dot items, which are about 25 per cent cheaper than national brands.
Ms Louisa Chua, 41, who now buys the cheapest brand of floor cleaner, is happy for the help.
She said: 'For some items, like floor cleaner, it does not matter if you buy the cheapest type. If I see a lower- priced version, I will buy it instead.'
