Giant Singapore to slash prices of 650 products by 20% amid pandemic

Singapore

GIANT Singapore is to lower the prices of some 650 products by about 20 per cent. It also hopes to scale up its recently launched house brand Meadows across its global network.

The lower prices campaign comes amid growing financial anxiety as a result of the ongoing Covid-19 pandemic, said Dairy Farm, which runs Giant. As such, Dairy Farm said that it is committed to keep the price reductions in place for a minimum of six months.

"They (customers) would also like more stable prices, particularly on those essential products that they buy most often," said Chris Bush, Dairy Farm chief executive officer for South-east Asia Food Business.

"We developed a number of productivity streams that are helping us to create the investments that we're putting into this campaign, but we're also of course working very closely with our partners and our suppliers," he added in a media briefing.

"And so where we can, we're working together to see how we can reduce costs through the supply chain and pass those benefits on the customers through low prices."

Customers can expect to see an average of a 20 per cent price reduction across products including national brands, fresh products, as well as Meadows, which was launched in August.

Meadows is gaining traction at Giant, outperforming brands such as Nescafe, Kellogg's Corn Flakes and Coca-Cola, said Dairy Farm.

Meadows was introduced as a separate tier of products from the existing Giant house-brand products. The Giant house-brand carries "entry price point" products that are the cheapest on display.

Meadows, on the other hand, has a slightly higher quality benchmark but still remains price-competitive compared with other leading brands.

The new brand also allows Dairy Farm to sell within their South-east Asia and North Asia networks in order to gain scale and pass on savings to customers, said Lee Yik Hun, marketing director of South-East Asia Food, Dairy Farm Group.

Asked if the price reductions will have an impact on the firm's bottom line, Mr Bush replied that while the bottom line is important to the business, Dairy Farm's move to promise long-term price reductions is about "doing the right thing for customers".

"And if we can get the top line, moving because we're doing the right things for the customers, then it makes the bottom line much easier to manage," he noted.

Meanwhile, Giant has partnered with key suppliers, farmers and fishermen to ensure that fresh products remain a key focus in stores.

This comes as customers are cooking more often than before amid safe-distancing and stay home measures, boosting demand for fresh food.

"We have gone all the way up the supply chain and looked at how we're buying the product, the specification, the quality, how the product moves through the supply chain and how we can ensure the best possible freshness for our customers," said Mr Bush.

The launch of lower prices is part of a wider Giant rebranding exercise. All 53 Giant stores will be refreshed along with a new logo.

It will also include the addition of some 2,000 products including fresh foods and groceries and live seafood. There will also be in-store bakeries and the launch of a new fried chicken brand.

Shares of Dairy Farm closed on Wednesday at US$3.95, up US$0.04 or 1 per cent.