FairPrice Xpress leads convenience development in Singapore

December 1, 2009

The FairPrice Xpress Moments [pdf document]
A PDF featuring a number of images of FairPrice Xpress, Singapore

In 2003 NTUC FairPrice, Singapore’s largest supermarket operator, signed an agreement with ExxonMobil Asia Pacific to form an alliance to convert all Esso and Mobil service stations in Singapore to either FairPrice Xpress or Cheers convenience stores.

It was a landmark move, which has changed the retail landscape in Singapore.

After the initial pilot, the roll out of FairPrice Xpress began in 2005 and was completed with 20 converted stores in 2007.

The FairPrice Xpress format occupies 150sq m, on average, and has an expanded fresh, chilled and frozen range.

The store layout is designed to provide a conducive shopping environment. It features an extensive variety of chilled soft drinks while fresh and chilled products plus hot snacks are located near the checkout to encourage impulse purchases.

ATMs and magazines are located away from the checkout to minimise obstructions.

FairPrice Xpress maximises its dual appeal in marketing communications, promoting low prices and extended opening hours under the strap line: One-stop at supermarket value & 24/7 convenience.

It claims another first by introducing products not previously seen on a forecourt such as ready-to-eat meals and top up items and essentials.

It is breaking new ground by being the first and only petrol c-store in Singapore to offer a wide range of fresh fruits, vegetables, dairy products and frozen meats. The hot food offer, meanwhile, features leading local pastry chains, Polar and Delifrance.

Services are catered for too with self-service AXS kiosks for electronic bill payment, ticket bookings and facilities to purchase insurance plus ATMs for cash card top-ups, share subscription and banking transactions.

Value extends to a series of monthly promotions including food and non-food offers such as electronic products.

On top of the kiosks for bill payment, technology is benefiting FairPrice Xpress on an operational level. Store staff have PDA terminals for stock ordering, printing shelf labels printing and stock taking. The stores also use automated fuel replenishment technology, which is reported to have saved more than 1,800 man-hours per month across the chain.

Customer service is high on the agenda too. FairPrice Xpress operates a loyalty programme called Smiles with points redeemable across fuel, groceries, car wash, vouchers and air miles. In addition, it actively rewards good customer service and hosts various incentive schemes and competitions for staff. The initiatives are paying dividends with internal mystery shopper results consistently exceeding 95%.

CSR activity is wide-ranging too. The NTUC FairPrice Foundation makes contributions to the poor and needy. The company also donates to charities. It develops its people via internal and external training opportunities and ensures safety by providing vaccinations against typhoid for food operators and providing one-hour product recall. It is also providing employment opportunities for older workers with 50% of pump attendants aged over 50 and 29% aged over 60. On an environmental front it has incorporated LED lighting to conserve energy and water interceptors to prevent pollution of the water table.

The format is delivering strong results. The growth in monthly like-for-like sales after conversion is 59% and FairPrice Xpress is growing by 17%, three times the market growth. As a result, it commands a market share of 7% from a 3% share of stores. Since 2007, the format has recorded 96% sales growth (Nielsen).

Going forward FairPrice Xpress plans to enhance customer service with the introduction of touch-screen point-of-sale terminals and improved PDAs for inventory management. It also plans to expand the range of 24/7 services to include financial services, lottery, laundry and courier services.

Expansion beyond the forecourt into residential areas is also on the cards.

FairPrice Xpress looks poised to continue to transform the convenience retail landscape in Singapore.