NTUC FairPrice’s Managing Director responds to TOC

Mr Gerry Lee, NTUC FairPrice’s Managing Director (Business Groups) responds to TOC’s article “NTUC Fairprice in Hougang closes“.

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Like any business operation, the decision to open a new store or to close down an existing store are commercial decisions driven by factors such as profitability of the store and competition.

Over the last few years, while we have opened many new stores, we also had to close down stores that were not doing well. Our stores at Queenstown and Jurong East are 2 stores that had to close down in the last few months due to commercial reasons.

Our lease at Hougang CC will expire at the end of this month and we took the opportunity to review the business viability of this store. We decided to close down this store as it was no longer a viable business option for us. We also took into consideration that we have other stores in the vicinity to serve our customers. In Hougang alone, we operate 4 FairPrice supermarkets and 1 FairPrice Xtra Hypermarket in Hougang Point. Two of our supermarkets also offer 24-hour shopping convenience and they are located at Kang Kar Mall and at Hougang Ave 4. We have put up notices at the store in Hougang Community Centre and informed our customers about these nearby FairPrice stores as well.

Our store at Hougang Community Centre closed on 11 July 2011 to give us time to clear out from the store.

We will continue to serve our customers in the Hougang area and will strive to provide quality products at best value and service from the heart.

8:42PM, 12 JULY 2011:

An updated response from NTUC.

As a social enterprise, we compete on equal footing with other retailers and need to ensure that our stores are sustainable and aligned with both our social and business objectives. It is only when we do well are we able to do much more good for the community. The decision to open a new store or to close down an existing store are commercial decisions driven by factors such as profitability of the store and competition.

Over the last few years, while we have opened many new stores, we also had to close down stores that were not doing well. Our stores at Queenstown and Jurong East are 2 stores that had to close down in the last few months due to commercial reasons.

Our lease at Hougang CC will expire at the end of this month and we took the opportunity to review the business viability of this store. We decided to close down this store as it was no longer a viable business option for us. We also took into consideration that we have other stores in the vicinity to serve our customers. In Hougang alone, we operate 4 FairPrice supermarkets and 1 FairPrice Xtra Hypermarket in Hougang Point. Two of our supermarkets also offer 24-hour shopping convenience and they are located at Kang Kar Mall and at Hougang Ave 4. We have put up notices at the store in Hougang Community Centre and informed our customers about these nearby FairPrice stores as well.

Our store at Hougang Community Centre closed on 11 July 2011 to give us time to clear out from the store.

We will continue to serve our customers in the Hougang area and will strive to provide quality products at best value and service from the heart.