SINGAPORE - Supermarket chain NTUC FairPrice launched a new retail format aimed at budget-conscious consumers on Friday (July 1).
FairPrice Shop, which will be located near the homes of lower-income families, offers a smaller but more affordable range of products, including a new FairPrice housebrand, Value Fresh. The 34 fresh vegetable products in this range are 5 per cent to 10 per cent cheaper than the chain's existing Pasar range of housebrand produce.
Two of its supermarkets have been converted to FairPrice Shop outlets in the mature estates of Eunos and Circuit Road, which have a higher concentration of three-room flats and one- and two-room rental flats.
FairPrice aims to open another four outlets by the end of 2016 and is looking at locations such as Henderson, Boon Lay, Ang Mo Kio and Jurong East.FairPrice Shop is a "basic, no frills supermarket format which will focus on better catering to budget conscious shoppers", said FairPrice chief executive Seah Kian Peng.
"This new format will complement our overall efforts to moderate the cost of living while also remaining relevant to the evolving needs of customers from all walks of life," he added.
Mr Seah added that the cheaper Value Fresh products were made possible by FairPrice taking advantage of economies of scale. He assured shoppers that the products were of the same quality and from the same suppliers as those in its Pasar range. The bulk of the items are from Malaysia, China or sourced locally.
Each FairPrice Shop is about one-tenth the size of its average supermarket and stocks about 1,500 products, compared with 10,000 to 15,000 in supermarkets and more than 20,000 in hypermarkets.
About half of the selection at FairPrice Shop are made up of housebrand products, Yellow Dot items - the lowest priced items of every product range - and FairPrice's Every Day Low Price items, which is a basket of items which are most popular among shoppers and competitively priced. At its usual stores, these items make up 20 per cent of the selection.