We visited the newly opened FairPrice Xtra in VivoCity. This impressive hypermarket is about 9,000 sq m and spread over two levels. It is designed with many speciality concepts and unique experiences to woo young shoppers. The store looks great from every angle, so keep a look out for our full store visit report after its official opening in August.

Exceptional retail design

Eye-catching features like a pink ice cream truck, wine bottles display and fresh vegetables farmed in-store are some of the Instagram-worthy sections.

Fun and unique services

There were lots of interactive counters which will deliver a differentiated experience for shoppers:

• buy raw coffee beans to be roasted and ground to personal preferences
• freshly churned organic nut butter with salt or sugar upon requests
• draft beer served using a special technology that fills cups from the bottom
   

Dine-in area with cooking service

This is the first FairPrice store with a dine-in area. Shoppers can pick their meat to be grilled in-store and have a complete meal with a selection from the salad bar. The butchery by Culina also offers a roasting service for takeaway. This requires two days of advance notice.

Unity’s new look and feel

FairPrice’s health and beauty banner, Unity, is linked to the hypermarket but operates as a standalone store. The store has a wide range of derma skin care brands, a health food section and a pharmacist in-store. The exclusive and premium ranges enhance its health specialist imagery.

All images source: IGD Research

Want to know more about FairPrice in Singapore? Contact us for a demo of IGD Asia and explore the retailer’s strategic priorities. 

Sweden-based Axfood has revealed its Q2 2019 results, reporting an increase in net sales of 6.7% to SEK13.0 bn (US$1.4 bn). For the three months to 30 June, operating profit also rose by 10.2% to SEK601m (US$64.1m), while net profit totalled SEK429m (US$45.8m).

Growth in Q2 driven by formats…

Axfood attributes the growth to “Willys’ continued strong performance as well as by Axfood Snabbgross’s profitable growth”. Willys generated an 8.9% increase in sales, while Snabbgross grew by 6.8%, Dagab by 6.7% and Hemköp by 0.4%.

CEO Klas Balkow said the growth was “proof that our various food concepts are consolidating already strong positions in their respective segments. The store network is growing and being upgraded, and we are happy to see that every new store is welcomed by a constantly growing and loyal customer base.”

…resulting in a 5.5% increase in H1 sales

The results translate to an overall 5.5% increase in first-half sales to SEK25.0 bn (US$2.7 bn). Operating profit and net profit also increased by 10.9% to SEK1.1 bn (US$117.3m) and by 4.9% to SEK783m (US$83.5m), respectively.

Axfood said it will continue to make “future-oriented investments” in its store network, ecommerce activities and logistics solutions.

We look at how Netherlands-based Jumbo and Marqt, who have taken different steps to restructure their store portfolios to remain competitive in the market.

Jumbo buys Agrimarkt

Jumbo has announced it will take over supermarket chain Agrimarkt from the cooperative CZAV. This will see it acquire six stores in Goes, Middelharnis, Oud-Beijerland, Roosendaal, Terneuzen and Vlissingen. Jumbo will not take over the AgriSnel petrol filling stations and the AgriSnel charging stations, these will continue to be operated by CZAV.

Jumbo hopes to offer all the 360 employees’ opportunities in its organisation. CEO Frits van Eerd commented, “This acquisition fits well with our growth ambitions… The Agrimarkt stores are a great addition to our existing store base.” The acquisition is subject to regulatory approval and the financial details have not been disclosed.

Marqt closes two of its largest stores

Elsewhere in the Netherlands, Marqt has said it is restructuring its store portfolio to cut costs. Marqt, established in 2008, has not yet made a profit from its 18 stores. As such, the company has announced it will close two of its largest stores, on Utrechtsestraat in Amsterdam and Hofweg in The Hague, to enable it to focus on smaller formats. The stores are 2,045 sq. m and 1,460 sq. m respectively.

The lease contracts for the properties will be taken over by Albert Heijn. The move is in line with Marqt’s new strategy of operating stores with a sales area between 350 and 750 sq. m. Marqt will release its full strategy in Q4 2019. Over the last year, Marqt has signed five new leases, of which three have now been opened. The other two are expected to open by the end of 2019.