NTUC FairPrice opens members-only megastore

SINGAPORE — NTUC FairPrice has opened the first members-only megastore at its FairPrice Hub in Joo Koon for shoppers looking to get the most out of their money by bulk-buying groceries and household items.

The double-storey Warehouse Club measures one-and-a-half football fields at 80,000sqf and stocks more than 4,000 products, including groceries, fresh and frozen food, household items and health and beauty products.

Warehouse Club’s retail format follows that of other members-only warehouse stores overseas such as Costco in the United States. The concept has also spawned similar membership-based stores in Japan, South Korea, Taiwan and Australia, where time-strapped consumers buy in bulk to reduce frequent grocery shopping trips while saving.

Items sold at Warehouse Club come in larger-than-usual sizes, allowing shoppers to save at least 20 per cent on certain products. For instance, a 25kg pack of Song He 100% Thai Fragrant Rice costs S$57.95 at Warehouse Club. A 10kg pack of the same product costs S$30 at regular FairPrice supermarkets.

Specially-listed items that offer deep discounts of up to 50 per cent will be made available periodically. Currently, a carton of two dozen bottles of Snapple juice is going for S$12, giving consumers an 80 per cent saving on the regular retail price.

Membership at Warehouse Club costs S$35 a year for NTUC Union members and S$50 a year for non-Union members. More than 12,000 people have signed up as members since registration began in May.

Speaking at the store’s opening yesterday, NTUC FairPrice deputy CEO of operations, Mr Gerry Lee, said: “Warehouse Club is a unique concept that caters to bigger families, corporate events, people who want to do parties.”

Given that Warehouse Club’s concept is new here, some consumers whom TODAY spoke to were tentative about it. Said 46-year-old accounts manager Edna Lim: “Though I usually buy my groceries in normal quantities from NTUC, my family of five still can’t finish them before the expiry dates and I have to throw the food away. I don’t think I’ll need to buy in bulk.”

Mr Jack Wong, 55, who runs a porridge and bee hoon stall in Commonwealth, said he would prefer to get his supplies from provision shops in the area.

“Although the supplies I need might be cheaper (at Warehouse Club), transport fees or even fuel costs might add up to be about the same, as I do not live near (Warehouse Club),” he said. “Furthermore, the long hours as a hawker leave me too tired to shop for my own supplies and there are no delivery services from Warehouse Club.”

For Ms Pek Xin Yum, a first-year Nanyang Technological University engineering student who is living in the school’s hostel, the savings offered do make the membership seem worthwhile: “Although our school has its own Giant supermarket, the amount of savings we can get (at Warehouse Club) is very tempting ... the membership fee can easily be recovered. If I can find enough friends at the hostel to share with, I will definitely consider purchasing from Warehouse Club.”