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January 12, 2008 Saturday
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Jan 12, 2008
FairPrice, go no frills to help low-income group
ON JAN 5, The Straits Times printed an article, 'Help needed with higher cost of living'. The article showed a photo of Singaporeans buying food items from a Johor hypermarket.

With food prices rising rapidly, I feel that FairPrice, which is the largest supermarket chain in Singapore, can do more to help lower-income families.

In order to lower food costs for needy families, FairPrice should start a no-frills, back-to-basics concept store.

For it to be able to sell goods at near cost, the store should open in the cheapest industrial or warehouse area where rents are the lowest in Singapore (but still accessible by public transport).

Most FairPrice outlets are located in shopping centres and town centres where rent is high and accounts for a large part of running costs.

Minimal or zero renovation should be done to keep set-up costs low.

The store should not have any air-conditioning, only a few large fans for air circulation.

Industrial shelves should be used to display goods which should be only basic necessities, with no luxury or premium items. Only fresh vegetables that do not need refrigeration should be sold. There should be no refrigeration machine in the store.

The store should operate and be open only eight hours a day (preferably during daytime) to reduce the cost of cashiers on shift. No plastic bag will be given to keep prices down. There should also be no carts or baskets provided. To further keep running costs low, FairPrice can take on mainly students and volunteers as cashiers.

Parking lots can be provided but will be charged at a high premium - if you can afford a car, you do not need subsidised goods. Public transport companies should provide free shuttle buses to and from the store via the nearest bus interchange.

Such a store will appeal to lower-income workers who will not mind travelling to such a location to buy cheap groceries.

I hope FairPrice will set up such a store for the lower- income families and low- wage foreign workers in Singapore. Such a concept store should be able to reduce food prices by at least 20 to 40 per cent.

Syu Ying Kwok

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