, Singapore
3 views

Singapore's supermarkets to lose some value in 2022: IGD

More Singaporeans have been allowed to work back in offices since December 2020.

Although Singapore's supermarkets will continue to be the dominant channel as more people return to their workplaces and start eating out more, the supermarkets will still lose some of its value over the next year, according to a report from IGD.

The sector’s market share is projected to shrink from 61% to 56.4% by 2022. Meanwhile, hypermarkets will maintain their 6.3% market share. “[The] retailers’ efforts to revitalise the stores with more relevant propositions will support their role in the market,” the report stated.

As many Singaporeans worked from home and cooked more, the country’s grocery market grew four times faster than a typical year. Since December 2020, however, more Singaporeans are allowed to work in offices.

As such, demand for groceries is expected to come off its peak and taper back to more normal levels over the next year. The market is projected to post a negative growth rate over the next two years, at a compound annual growth rate of -1.5% from 2020 to 2022.

Online is expected to continue to grow into 2022, as the increased capacity at key retailers and shoppers’ familiarity with the channel will maintain its growth. The sector’s market share is expected to grow from 6.5% in 2020 to 8.8% in 2022.

In particular, Alibaba Group and FairPrice Online are ramping up their capacity and making investments to develop the channel over the long term. New players like Foodpanda and Grab are also helping shoppers embrace the channel.

At the same time, convenience stores are expected to grow to 8% of the market, as retailers are responding quickly to changing behaviour to transform their strategy. “Better product mixes, more services and promotions will drive footfall back to stores,” the report said.

Traditional is tipped to grow its market share from 18% in 2020 to 19.8% in 2022, regaining some of the value lost in 2020. “Whilst the channel will grow slightly in the next two years, its longer term trend is still in decline,” the report added.
 

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Get Retail Asia in your inbox

Customers take center stage: Using innovation to grow your business

This exclusive Retail Asia virtual round table on 28 May will guide retailers on how to meet their customer's needs and sustain their business during the pandemic.

How NTUC FairPrice's consumer centric mindset became its golden goose

The "FairPrice on Wheels" community initiative brings daily essentials to mature estates with higher concentration of low-income seniors.

US-based Sam’s Club launches first Huizhou store

The store offers sampling activities, free eye and hearing tests, and wine tasting.

Hongkong Land launches shopping mall in Chongqing

It features a seven-storey botanical garden and sports and cultural interactive offerings.

Revenge spending boosts South Korea’s luxury retail

Both women’s and men’s clothing stores saw a rise in sales this year.

How South Korea’s supermarkets lure in neighborhood customers

Customers have been shopping more through local shops and online platforms.

Shinsegae’s Emart offers ‘e-money’ to customers

Shoppers can save up to 3,000 points by finding products sold cheaper elsewhere.

South Korea’s department stores scramble for better products

The rapid rise of online shopping has weakened their status amongst SMEs.

Alibaba's Taobao Deals to roll out more direct-from-producer products

The app saw 100 million users during its first year.

JD’s Seven Fresh launches first Shenzhen store

Customers can get imported produce as well as local fruits from Guangdong.