Fierce competition drives Giant to shutter ninth Singapore supermarket this year in Toa Payoh, leaving only 45 nationwide

SINGAPORE — Supermarket chain Giant will shut its ninth store in Singapore in September 2024 due to intense competition from online retailers and other grocery stores, The Straits Times reported today.

According to the Singapore daily, Giant has closed several outlets, including a hypermarket in Sembawang, three supermarkets in Bishan, Ang Mo Kio, and Bukit Panjang, and four smaller “Express” stores since February.

“Giant and Cold Storage remain a core business of DFI Retail Group, and our commitment to growth and expansion in Singapore remains unchanged,” an unnamed spokesman for the group was quoted as saying.

The closure of the Toa Payoh Lorong 4 supermarket will reduce Giant’s presence to 45 stores, down from 53 in February.

Despite opening a new store in Tengah this year, Giant’s footprint in Singapore is shrinking, reflecting a broader regional trend.

In March 2023, DFI Retail Group exited the Malaysian grocery market by selling its stake in GCH Retail, which operated Giant and other chains there.

Retail group PT Hero Supermarket, where DFI holds a majority share, also shut all its Giant stores in Indonesia in 2021 after a significant revenue drop.

Experts suggest that high rental rates, fierce competition, and a shift to online shopping are driving the closures.

During a recent visit to the Toa Payoh store, staff noted poor business due to competition from nearby FairPrice outlets and mentioned that employees would be redeployed to Cold Storage.

A staff member at the Toa Payoh location said that despite no closure notices, empty freezer units and refrigerator shelves were evident.

The Business Times reported in April that the 9,731 sq ft retail unit in Toa Payoh was listed for sale at S$16.5 million.

A DFI spokesperson had previously stated that selling the store would allow them to reallocate resources and improve customer experience.

The firm’s half-yearly earnings statement in August acknowledged challenging consumer sentiment but highlighted improved profitability through cost control.

Associate Professor Lau Kong Cheen noted that Giant’s closures might indicate a consolidation of DFI’s grocery business under Cold Storage, which caters to a higher-end market.

Professor Kapil Tuli suggested that DFI’s strategy could be shifting towards the high-end market, where better margins are possible.

Local resident Rohana Ahmad expressed sadness over the closure, noting the store’s competitive prices and better seafood and meat selection compared to FairPrice.