Find out about the retailer's strategic priorities, commercial focus areas, channel and country presence.

See data on the retailer’s performance and forecasts for its operations by channel.

 

This in-depth guide to Hong Kong explores the key trends in grocery retail and the growth strategies of the leading retailers in the country.

We review Dairy Farm's current performance, its growth forecasts for the next five years, plus progress against key strategic objectives.

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Yonghui has launched a new format, Market Life, in Shanghai’s Pudong District.

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We went to the newly refurbished Funan Mall in Singapore to check out four stores of the leading retailers in Singapore.

Young and energetic vibe

Source: IGD Research

This used to be known as the IT mall - a place for tech geeks who want to build their own computers from component parts and check out the latest gadgets. After three years of redevelopment, the mall has opened with a swanky new look, including an indoor cycling path and a climbing facility.

Great visual merchandising at FairPrice Finest

Source: IGD Research

A new range of Guinness chocolates is displayed at the front of the store. Shoppers who are not keen on chocolates can pick up some healthy protein bars instead. Besides daily essentials and imported snacks, the store has a range of food-to-go options for the busy office workers. There are only self-checkout counters, with one staff member available to offer support when necessary.

Guardian builds on its health heritage

Source: IGD Research

Guardian’s spacious layout makes it easy to navigate to the health, skincare and beauty sections. The retailer’s expertise in healthcare comes across with an on-site pharmacist and a wide range of health supplements. This area is fitted with natural wood panels which forms the backdrop. Glossy black shelves of cosmetics and haircare line one side of the store to create a strong visual impact, while a silver tone on the other side brings out the professionalism of the derma skincare brands.

Watsons compact store includes self-checkout

Source: IGD Research

This Watsons store has the colourful design and signages that can be seen in its latest stores. Self-checkout counters are also a recent addition to stores that have been refurbished as the technology becomes more familiar to Singapore shoppers. The retailer has been driving membership through additional discounts and rebates, and we can see this coming across here.

7-Eleven’s 400th store

Source: IGD Research

While this is a small store, it has incorporated all the latest features from 7-Eleven:

  • 7Cafe: freshly brewed coffee from 100% Arabica beans prepared with WMF machines
  • 7-Premium Japanese snacks: Singapore is one of the first countries outside of Japan to sell these snacks
  • 7-Select ready-to-eat range: its popular butter chicken biryani, onigiri, kimchi fried rice and chicken bolognese are available

 

Find out more about retailers in Singapore on our website here.

Dairy Farm has released its results for the first quarter of 2019, with sales ahead of the same period last year.

Food: large formats remain a challenge, convenience strong

The Group’s multi-year transformation plan for its Supermarkets and Hypermarkets business is underway, but CEO Ian Mcleod previously estimated it will take the company five years to complete its turnaround plan.  Sales in North Asia were in line with last year, with sales growth in Hong Kong and Macau offset by weakness in Taiwan.

Sales in Southeast Asia were impacted by the launch of a store consolidation plan in the region.  which aims to drive stronger profitability longer term.

Convenience store sales increased in all markets, but store network expansion impacted profits.

Health and beauty: continues to trade strongly

Sales and profits growth continued for the Health and Beauty business in North Asia. Southeast Asia also delivered a solid performance with encouraging sales and profits growth in the quarter, particularly in Malaysia and Indonesia.

Home furnishings: sales up in all markets

Profitability in the Home Furnishings business was lower mainly due to the increased cost of goods compared with last year and the pre-opening costs for new IKEA stores under development.

Joint ventures and associates: sales and profit up

Maxim’s and Yonghui delivered strong sales growth for the period and their like-for-like contributions were also ahead. The Group’s results also benefitted from its 20% stake in Robinsons Retail it acquired in November last year.

Our view

As Dairy Farm looks to reshape the Food business to achieve long-term sustainable growth, performance from key associates Maxim’s, Yonghui and Robinsons Retail will become even more important to support Dairy Farm’s top-line growth.

Want to know more?

Asia subscribers can read more on Dairy Farm's Strategic Outlook here.

Dairy Farm FY18 results here.

Robinsons has posted its annual results, with net sales up 15.1% to PHP132.8bn (US$2,556m).

Strong set of annual results

Robinsons posted net income of PHP5.1bn (US$98.5m) last year, an increase of 2.6% on the year previous. It achieved a 5.9% like-for-like (LFL) growth last year, mainly supported by a 6.1% increase in basket size in its supermarket business.

In its convenience store business, Ministop, sales increased 4.9% to PHP9,065m (US$174.5m) and LFL increased 5.1%. The retailer has cited shoppers increase in purchasing power driving growth.

Investment in Growsari

Robinsons Supermarket invested in Growsari Inc, a local tech start-up company that provides grocery delivery service to sari-sari stores.

Alignment in Rustan’s

The merger between Robinsons and Dairy Farm’s Rustan Supercentres Inc. last year has led to four key operational areas for review:

-       Merchandising: trading terms and other income, gondola rentals and other income

-       Human resources: headcount rationalisation

-       Supply chain and inventory control: shipping and trucking rates, distribution centre fees

-       Procurement: office supplies, air-conditioning units, refrigeration PM systems, managed print services, IT equipment

Robinsons and Rustan’s are currently still run quite independently and merger activity are still in early stages, but we do expect the businesses to integrate more closely over the next couple of years.

150 new stores this year

Robinsons will open up to 150 new stores in the Philippines this year, investing between PHP3bn to PHP5bn (US$57.8 – US$96.3m) on expansion. As of December 2018, it had 1,910 stores, including supermarkets, department stores, do-it-yourself stores, specialty stores, drugstores and convenience stores. Total network covered a gross floor area of 1.48m sq m.

Yonghui has posted another strong set of annual results. Total revenue increased 20.4% to CNY70.5bn (US$10.5bn), with consolidated net profit up 18.5% to CNY1.5bn (US$219.9m).

Fastest growing bricks-and-mortar retailer in China

Despite increasing competition and the market’s slowdown in growth, Yonghui continues to be the fastest growing bricks-and-mortar retailer in China.

To maintain growth, it has developed innovative formats such as Super Species and opened smaller stores such as Yonghui Life. This year, it will develop a new ‘Mini Store’ format with plans to open 150 stores.

Rapid expansion and national coverage

Yonghui has presence in 24 provinces and cities, and full coverage of first to sixth-tier cities. In 2018, it ended the fiscal year with 708 supermarkets with total operating area of 6,123,545 sq m. This increased by 962,524 sq m compared with the same period last year.

Private label another priority

Yonghui continues to develop its own brand strategy in line with market trends. In 2018, sales of self-owned brands were CNY1.6bn (US$237.7m), with quality and supply areas of focus. The retailer is transforming its supply chain around three core principles, “quality, brand and source”.

It Is also committed to embracing new technologies and has established a quality control management system to pilot research on food traceability, smart site selection and customer insights.

Strategic agreement with Hongqi

Yonghui has increased its stake in Chengdu-based Hongqi Chain to 21% for CNY709.9m (US$105.5m). Hongqi operates approx. 3,000 convenience stores and small supermarkets in Sichuan province.

Yonghui to increase stake in Zhongbai

Yonghui is planning to increase its stake in Zhongbai from 30% to 40%. The deal will be worth an estimated CNY559m (US$83.3m). Zhongbai, based in Wuhan, has over 1,200 stores, including supermarkets, convenience (Hao bang and Lawson banners), neighbourhood supermarkets, food markets and a premium grocery store format.

We've developed a single, universal methodology for calculating food and consumer goods retail data, supported by our programme of primary and secondary research. This makes Datacentre the most reliable and robust source available for data of this type. 

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