[Bigiron]

Why giant supermarket closed so many outlets in Singapore


 Meta AI: Giant supermarket closed many outlets in Singapore due to declining profitability. The main reasons for this decline were lower foot traffic and increasing operational costs, including rent and manpower expenses ¹. The rise of online grocery shopping also played a significant role, with competitors like FairPrice and RedMart offering aggressive marketing and convenient delivery options ¹.

*Challenges Faced by Giant*

- _Lower Foot Traffic_: Fewer customers were visiting physical stores, leading to decreased sales ¹.
- _Increasing Operational Costs_: Rising rent and manpower expenses made it difficult for Giant to maintain profitability ¹.
- _Online Competition_: Online grocery shopping platforms offered convenience and competitive pricing, attracting customers away from physical stores ¹.

In response to these challenges, Giant's parent company, Dairy Farm, decided to review lease renewals and store performance, leading to the closure of several outlets ¹. Despite this, Giant still operates around 60 supermarket stores across Singapore ¹.

[Alice Alicia]

Giant Supermarket, a prominent player in Singapore's grocery market, has been closing several outlets in recent years. This decision is primarily attributed to a combination of factors:

* Evolving Consumer Behavior:

* Online Shopping: The rise of online grocery platforms like GrabMart, NTUC FairPrice Online, and RedMart has significantly shifted consumer preferences. Many shoppers find it more convenient to order groceries online and have them delivered to their doorstep.

* Smaller Households: Smaller household sizes in Singapore have reduced the demand for large-format supermarkets. Consumers are increasingly opting for smaller, more convenient stores closer to their homes.

* Stiff Competition:

* Local Competitors: Established players like NTUC FairPrice and Sheng Siong have a strong presence in Singapore and offer competitive pricing and services.

* International Brands: International brands like Dairy Farm (Cold Storage, Giant, and Market Place) and Metro have been expanding their market share, intensifying competition.

* Rising Operating Costs:

* Rentals: The high cost of retail space in Singapore, especially in prime locations, has increased operating expenses for supermarkets.

* Labor Costs: Rising labor costs, including minimum wage increases and employee benefits, have added to the financial burden of operating supermarkets.

* Changing Demographics:

* Aging Population: As Singapore's population ages, there may be a shift in consumer preferences towards healthier, more specialized food products. This could require adjustments to store layouts and product offerings that may not be feasible for all existing outlets.

To remain competitive, Giant has been focusing on strategies such as:

* Online Presence: Enhancing its online platform to offer a seamless shopping experience.

* Smaller Formats: Opening smaller, more convenient Express stores to cater to local neighborhoods.

* Product Differentiation: Offering unique products and promotions to attract customers.

However, the challenges faced by the grocery industry in Singapore are likely to persist, and Giant, along with other retailers, will need to continue adapting to the changing market dynamics to ensure long-term sustainability.

[luncheonmeat]

Cold storage very strong.

Actually I see more customers making payments @ Giant dan CS [mainly shoppers look see look see but no buy].

[moonrab]

Balek Kumpung la...
Malaysia bigger market mah...🤣

[Niubee]

Balek Kumpung la...
Malaysia bigger market mah...🤣

Dun wan local supermart corner the market.

[Napoleon Porlumpar]

lousy management just like Isetan

[cityhantam]

Recently bought some durian from G.

Not ripe! 

KNN!

QC is so lousy!

Using Banglas to open durian ah?