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26-03-2025, 02:30 PM
Lets talk about Giant Supermarket first. Macrovalue will 99.99% do a better job as the benchmark is a very low one(ie DFI)
DFI is extremely inefficient, to quote an example, they had 2 supermarkets within 100m of each other selling the exact same things(one closed eventually). I get it when they want to defend their turf or sell different products but the very fact that BOTH ran out of popular items and is always always overstocked with slow moving item says a lot their operational capability. Also the number of people involved to get one simple task done makes them inefficient.
Next onto Sheng Shiong, most of SS supermarkets are HDB heartlands. Of all the SS I visited, nearly all are not near any Giant supermarkets. As my sample size is small I cant say for certain this is the case for ALL SS outlets but my best guess is it should be the case for most of it.
In the short to mid term, Giant/Cold Storage's operational capability will improve and so will profitability. There is minimal impact on SS. Long term, i doubt there would be any impact and SS should be up to the challenge should it arise. The only disruption I can possibly think of is if Macrovalue is able to somehow consolidate/convince their vendors to give them a significant edge in pricing by a larger region and not by country. This is perhaps key to the equation.
DFI is extremely inefficient, to quote an example, they had 2 supermarkets within 100m of each other selling the exact same things(one closed eventually). I get it when they want to defend their turf or sell different products but the very fact that BOTH ran out of popular items and is always always overstocked with slow moving item says a lot their operational capability. Also the number of people involved to get one simple task done makes them inefficient.
Next onto Sheng Shiong, most of SS supermarkets are HDB heartlands. Of all the SS I visited, nearly all are not near any Giant supermarkets. As my sample size is small I cant say for certain this is the case for ALL SS outlets but my best guess is it should be the case for most of it.
In the short to mid term, Giant/Cold Storage's operational capability will improve and so will profitability. There is minimal impact on SS. Long term, i doubt there would be any impact and SS should be up to the challenge should it arise. The only disruption I can possibly think of is if Macrovalue is able to somehow consolidate/convince their vendors to give them a significant edge in pricing by a larger region and not by country. This is perhaps key to the equation.