NTUC FairPrice
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NTUC FairPrice Co-Operative (Chinese: 新加坡职工总会平价合作社) is a supermarket chain based in Singapore and the largest in the country. The company is a co-operative of the National Trades Union Congress or NTUC. The group has 100 supermarkets across the island, with over 50 outlets of Cheers convenience stores island-wide. NTUC FairPrice has partnered with ExxonMobil to run several stations with a FairPrice branding at the minimarts at their stations. The supermarket has a slogan known as Singapore's very own. The head of the company is Ng Ser Miang.
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[edit] History
NTUC FairPrice was first established in 1973 as NTUC Welcome Supermarket in Toa Payoh, in order to solve the rising oil and daily prices then due to inflation. The then prime minister Lee Kuan Yew opened the first supermarket at Toa Payoh. Around the same time, other unions such as the Singapore Industrial Labour Organisation and Pioneer Industries Employees Union also set up co-operatives to run supermarkets. The two organisations later merged in the early 1980s to form the Singapore Employees Co-operative (SEC).
In May 1983, due to competition, NTUC Welcome and SEC merged to form a larger co-operative which was known as NTUC FairPrice Co-Operative Limited.
The company started a central-distribution system to change the way goods were delivered to stores, to enhance efficiency. This was owned by another company, but in 1998, FairPrice took full ownership of the warehouse and distribution company. It was renamed Grocery Logistics of Singapore (GLS). In 2003, FairPrice opened a new 13,000-square-metre Fresh Food Distribution Centre. The refrigerated-distribution facility centralises the distributions of fresh and chilled products to all the outlets in the chain. It is the first supermarket retailer in Singapore to build, own and operate its own fresh-food distribution centre.
That same year, FairPrice tied up with oil company ExxonMobil to open FairPrice Express and Cheers convenience outlets at seven Esso and Mobil stations as a pilot project. The station will be run by NTUC FairPrice Co-operative, which sets the fuel prices and run the station's minimart. ExxonMobil will supply the fuel, and will sell its oil products inside the FairPrice-run stations. If this pilot project proves successful, all stations will be converted to either FairPrice Express or Cheers with the co-operative taking over the management of each station. ExxonMobil also announced that all the stations will be renamed "Esso" by year-end. [1]
On December 28, 2006, FairPrice opened its largest branch in Singapore, the 7,150-square metre (77,000 square feet) FairPrice Xtra hypermarket, at Ang Mo Kio Hub. The new S$12 million outlet offers a wider range of goods than the typical FairPrice supermarket, and includes new lines like electronic products and fashion wear.[2]
In August 2007, FairPrice opened its upmarket outlet at Bukit Timah Plaza named FairPrice Finest, after five months of refurbishment. The move was to cater to the changing tastes of Singaporeans who are increasingly well-travelled. The 4,000 m² (43,100 ft²), two-storey outlet has an offering of products different from other FairPrice stores, and also features a Swiss-style delicatessen, a wine cellar and a European bakery. FairPrice has plans to open more Finest outlets.[3]
[edit] Regional expansion
FairPrice has ventured into the People's Republic of China to open supermarkets in various parts. It will be a joint venture with DBS Private Equity, New Hope Group, Silver Tie and Taiwan's Apex Group. The venture will be known as Nextmall, and will provide merchandising, management and logistics for a fee to Nextmart which is a China incorporated hypermarket. It has opened seven hypermarkets in China, with its first in Shaoxing, Zhejiang.
[edit] Concepts
In recent years, NTUC FairPrice has launched numerous in-store and individual-outlet concepts.
[edit] Individual outlets
- Liberty Market — Started out in 1998 as an American-themed supermarket, it sells products from the United States. It opened its first supermarket at Jurong Point and later at Plaza Singapura. Both have closed and the latter has moved to a smaller location at Orchard Grand Court, located at Killiney Road, which is also closed down.
- Cheers by FairPrice — This convenience store run by NTUC FairPrice was introduced in 1999. It offers 24 hour shopping convenience, and similar facilities to rival 7-Eleven. Cheers can also be found at selected ExxonMobil stations around the island, in which NTUC FairPrice co-operative runs the station, instead of ExxonMobil itself.
- FairPrice Express — A concept which can be found only at ExxonMobil stations, it is larger than Cheers and sells things like fresh produce, meat and seafood. It also sells more products meeting daily needs than a Cheers convenience store.
- FairPrice Homemart — This is a separate store selling non-food items, which include videos, electronics, furniture and household equipment.
- FairPrice Finest — This is a separate store offering up-market food supplies. It was officially opened in September 2007.
[edit] In-store concepts
- Australian Pavilion — A section in selected NTUC FairPrice supermarkets selling products from Australia. The format was introduced in 2000 at the Bukit Timah Plaza outlet.
- Thai Street — Selling food products from Thailand, such as Thai cuisine. Also introduced in 2000 at Rochor Centre.
- Peranakan Corner — A corner selling Peranakan foodstuff which is found only in the Marine Parade NTUC FairPrice outlet.
- Liberty Market — A section in selected NTUC FairPrice supermarkets selling American food products.
- Korean Section — A corner selling Korean food products at selected supermarkets.
[edit] Membership programmes
Every year, FairPrice offers NTUC Union Members (NTUC Cardholders) and FairPrice shareholders dividends, along with cash-back rebates for all purchases made at FairPrice supermarkets island-wide, including FairPrice Xtra, FairPrice Homemart, FairPrice Finest and FairPrice Express - excluding Cheers outlets. Such payout rates are subject to approval at Annual General Meetings (typically in the month of August). In 2007, FairPrice declared rebates amounting to 4% of purchases of up to S$6,000 made in the last financial year, as well as a dividend of 5% and special dividend of 3%. [4]
NTUC Cardholders, max Cardholders and PAssion Cardholders are entitled to 2 LinkPoints for every S$1 spent (for a minimum spending of S$20 in receipts issued on the same day) under the LinkPoints programme by NTUC Link.
In collaboration with OCBC Bank, FairPrice launched its FairPrice Plus membership programme in April 2007, offering banking solutions and promotions at all FairPrice supermarkets islandwide for all supermarket customers. [5] For a minimum transaction of S$30, VISA payment is now accepted at all FairPrice supermarkets for the FairPrice Plus Card and the NTUC-OCBC Visa Card (soon to be rebranded as the NTUC Plus Card) for NTUC Union Members.
[edit] Notes and references
- ^ "Mobil stations making way for Esso under rebranding", Channel NewsAsia, 18 April 2006.
- ^ "FairPrice hypermarket opens its doors", The Business Times, 28 December 2006
- ^ Nur Dianah Suhaimi. "Fancy exotic cheeses, live oysters? Try FairPrice", The Sunday Times, 19 August 2007.
- ^ FairPrice Rebates. "NTUC Union Membership Core Benefits", NTUC, 4 September 2007.
- ^ FairPrice Plus. "FairPrice & OCBC Bank Introduce the First FairPrice Plus Banking Product Offered Exclusively at FairPrice Supermarkets", OCBC Bank, 18 April 2007.
