No supermarket at VivoCity for several months; FairPrice Xtra to open by Q3 2019

SINGAPORE — When the Giant hypermarket in VivoCity mall shuts on Feb 17, patrons will find the shopping complex devoid of a supermarket for several months until rival chain NTUC FairPrice opens its biggest store there later this year.

VivoCity houses another supermarket, Cold Storage, but it too will shut on the same day, TODAY has learnt. Giant and Cold Storage are managed by retail group Dairy Farm.

TODAY reported in September last year on the closure of Giant at VivoCity. The outlet, which was spread over two levels, opened in 2006 and is among the mall’s anchor tenants.

FairPrice, the largest supermarket chain here, is set to take over the space by the third quarter of this year. The FairPrice Xtra outlet, spanning 90,000 sq ft, will be its largest in Singapore.

A FairPrice spokesperson said the store will boast “unique features” but did not elaborate.

In October last year, Ms Sharon Lim, the chief executive officer of Mapletree Commercial Trust Management — which oversees VivoCity — said FairPrice will bring a “new integrated concept” to cater to the varied needs of shoppers, and this is expected to improve the mall’s offerings.

With only a fortnight before the Giant outlet shuts, regular patrons told TODAY on Friday (Feb 1) that they would be inconvenienced and would have to visit other supermarkets.

Housewife Maria Peter, 57, visits the hypermarket several times a week and was sad to see it go. “The store has a good variety of produce and the prices are reasonable. It’s very upsetting,” said Mrs Peter, a Tiong Bahru resident.

After the store shuts, she will have to shop at the FairPrice Finest supermarket at Tiong Bahru Plaza or visit the Giant Express store at Jalan Membina in Bukit Merah.

Mr James Fernandez, 59, frequents Giant’s VivoCity outlet because of its range of offerings.

“I prefer this store because of the choices and quality, and they refresh it pretty often. It’s very difficult to replace,” said the part-time lecturer.

He will go to a FairPrice outlet at Bukit Merah after the hypermarket shuts. Mr Fernandez said he may have fewer reasons to visit VivoCity in future, as “there is no reason to come here except to eat”.

A resident of Sentosa who wanted to be known only as Mrs Tan, 55, said she may turn to online grocer RedMart or visit supermarkets in Telok Blangah and Pasir Panjang. She was surprised that FairPrice would open its outlet only several months later.

Giant’s closure of its VivoCity hypermarket comes after it shut two stores in Bukit Panjang and Jalan Tenteram in Whampoa estate last year, TODAY reported previously.

The chain is also reviewing if business will remain viable in at least three other stores. The outlets — at The Grandstand mall on Turf Club Road, Block 512 on Bishan Street 13, and Block 118 on Aljunied Avenue 2 — are being reviewed for lease renewals and store performance, among other considerations.

When approached on Friday, a spokesperson for Dairy Farm said the business has progressively redeployed its employees from its VivoCity outlets to other stores. A “core team” remains at VivoCity to serve patrons.

The spokesperson did not say if other stores will be shutting this year, but noted that the company reviews its strategy continually and adjusts its “portfolio mix to meet the evolving tastes and demands” of its customers. “For us, this is business as usual.”  

OFFER AN EXPERIENCE

In the first half of last year, operating profit for Dairy Farm’s hypermarket and supermarket businesses dropped to US$33.2 million (S$44.8 million) from US$71.3 million in the same period the year before.

Dr Michael Chiam, a senior tourism lecturer at Ngee Ann Polytechnic, suggested it could make shopping more experiential by setting up a cafe or conducting cooking lessons in its stores, for instance.

Mr Samuel Tan, course manager of the retail management diploma at Temasek Polytechnic’s School of Business, said Giant could be competing with players targeting similar customers and with similar product sources, such as Sheng Siong, another supermarket chain.

Hence, it needs to reinvent itself by introducing more house brands or exclusive products.

As for the future FairPrice Xtra outlet in VivoCity, Dr Chiam said it could consider a lifestyle theme and feature an in-store cafe.

“Customers could select the ingredients found in the supermarket and the cafe offers to cook (a dish) for them at a fee,” he said.

Mr Tan noted that FairPrice has been testing ideas at its Paya Lebar store, where shoppers can collect their purchases at a pick-up point, for instance.

It could build on the concept at VivoCity, enabling consumers to scan a product or quick-response code to better understand the product, its possible uses or cooking methods, he said.

“Fresh food from farms, ready food with seasoning and dine-in options could be considered as part of the shopper’s experience,” Mr Tan added.