Supermarket chain Giant will close its Toa Payoh Lorong 4 store in September 2024, marking the ninth closure for the chain this year. This closure will reduce Giant’s presence in Singapore to 45 outlets, down from 53 in February 2024. The Straits Times reported that Giant has already closed its hypermarket in Sembawang Shopping Centre, three supermarkets in Bishan, Ang Mo Kio, and Bukit Panjang, and four smaller “Express” stores in Nanyang Technological University, Pasir Ris, Redhill, and Punggol. Despite these closures, Giant opened a new store in Tengah in 2024.
Background
Giant’s parent company, DFI Retail Group, exited the Malaysian grocery market in March 2023 by selling its stake in GCH Retail, which operates the Giant, Mercato, and Giant Mini chains there. Additionally, all Giant supermarkets in Indonesia were closed in 2021 after PT Hero Supermarket, in which DFI is a majority shareholder, experienced a 34 per cent drop in revenue year on year. In April 2024, Business Times reported that the 9,731 sq ft retail unit occupied by Giant in Toa Payoh was up for sale at a guide price of S$16.5 million. The Straits Times attributed Giant’s cessation of operations in Toa Payoh to stiff competition from online retailers and other grocery stores. Employees at the Toa Payoh store will be transferred to Cold Storage outlets, which are also owned by DFI.
Regional impact
The closures in Singapore reflect a broader trend of Giant’s shrinking footprint in the region. From 2020 to 2023, the number of Giant stores remained steady, hovering between 53 and 55. However, the recent closures indicate a strategic shift, possibly influenced by the increasing competition and changing consumer preferences towards online shopping.
Employee reassignment
Employees affected by the closure of the Toa Payoh Lorong 4 store will not be left without options. They will be transferred to Cold Storage outlets, another chain under the DFI Retail Group umbrella. This move aims to mitigate the impact on staff and ensure continued employment within the company.
Future implications
The closure of the Toa Payoh Lorong 4 store and other outlets may signal further strategic adjustments by DFI Retail Group in response to market conditions. As the retail landscape continues to evolve, the company may explore new formats or digital strategies to maintain its market presence. The opening of the new store in Tengah suggests that while some locations are closing, there is still potential for growth in other areas.
