Source : Straits Times – 2 July 2009
HEARTLAND stores, which are struggling to stay afloat amid competition from major supermarket and convenience store chains as well as franchised outlets, are getting a helping hand.
The retailers will be given lessons on better sales practices, how to spruce up their displays, and how to keep up with latest retail trends.
A website was also launched yesterday, so members of the public can get quick information about the shops and what they sell. The website – www.hdb.gov.sg/where2shop – allows users to see what kind of products are being sold at shops across the island.
If a shop catches their interest, they can obtain its name, address, a map of its location and even directions to get there.
These measures, which will benefit more than 10,000 heartland retailers, are being paid for by the Housing Board. They are designed to help neighbourhood shops hold their own against everexpanding chains and shopping malls.
In recent years, names such as NTUC FairPrice, Sheng Siong and Giant have set up big, well-lit and well-stocked outlets in the heartland. Because of their size and operational efficiency, these chains have managed to keep prices low as well.
In addition, franchised convenience stores under the 7-Eleven, Cheers or iEcon banner, are also popping up everywhere. These stores, with their air-conditioned, neat interiors and 24/7 hours, are eating into the business of neighbourhood provision shops and others.
Yesterday, at the launch of the HDB Retail Seminar programme, Senior Minister of State for National Development and Education Grace Fu said heartland retailers need new tools to compete with big chains. The shopping habits of double-income families who value the convenience of large-scale shopping centres, rising affluence and the expectation of better service also threaten the Mom-and-Pop outlets in HDB estates, she said.
‘Many of them have to keep up with the challenges of the newer and bigger shopping complexes that are coming up, and will have to make improvements,’ Ms Fu said. Neighbourhood shops, she added, need to rethink their strategy.
The three-hour seminars – the first of which was held in Toa Payoh yesterday – should help. At these seminars, expert speakers give HDB retailers tips on how to improve their operations and identify business opportunities.
For example, retailers are advised to cooperate with other shops to run promotions, and to train their staff so that expansion can happen quickly when the opportunity arises. More such talks, which can cater to about 400 retailers at a time, will be held if there is demand.
Federation of Merchants’ Associations president Chua Ser Keng said the seminars were a good idea and would ‘increase interaction between shops and promote working together’.
‘On the whole, neighbourhood shops lack unity and do not cooperate with one another,’ he said. ‘That means missing out (on) possible business opportunities.’
Agreeing, Mr Jeffrey Kam, the owner of Rochelle, a shoe store in Yishun, said he had once tried to get shops near him to run promotions together, but failed because ‘no one wanted to go first’.
‘I am friendly with my neighbour, but it is hard to get everyone together to hold promotions at the same time,’ said the 44-year-old, who has seen business fall by 30 per cent since last year.
‘Everyone is doing his own thing.’
Ms Emiline Lee, 40, a retail lecturer at Ngee Ann Polytechnic, said neighbourhood shops really need help to stay relevant. Many, she said, are run-down and lack up-to-date products. She added that the HDB also stands to gain by helping them. ‘If HDB does not help them, that also means less rental revenue for it and fewer amenities for its residents.’
The big chains, meanwhile, welcome the help being given to smaller stores.
In fact, some, like the Prime Supermarket chain, will also attend the seminars.
Said Ms Ana Lei, assistant general manager at PSC Corporation, which runs the 100-store iEcon franchise: ‘It might actually increase customer flow to the neighbourhood areas and attract more customers to our outlets as well.’
TOOLS TO COMPETE
~ Lessons on better sales practices
~ Tips on how to spruce up displays
~ Guidance on how to keep up with latest retail trends
~ A Web directory to help the public find the stores and learn about their products
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