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27-09-2024, 12:13 PM
In the minimart/supermarket space. The variety/price of goods would determine how much sales a shop would get daily. And it is fairly consistent, the variance is quite low. On weekends and festive periods it would trend higher but on normal days it is quite stable.
In 99 case in msia, it took market share away from convenience stores and supermarkets by virtue of their location and pricing. They are everywhere and more convenient than super markets, and very much cheaper than the likes of 7-11. Also Giant being gaint, is not the most well-managed, it worked well for a while but were too slow to react to more nimble competitors, much like how they operationally lost out in SG to SS/NTUC.
There are also many opportunities for a supermarket to uplift their margins. In fact I would like to think Shopee is the online version of how brick and motar supermarkets are run. The main business of groceries is not going to give much margin going forward. And in the case of Shopee, the finance arm/ advertising / other tie ups will be much more lucrative.
Both have the same challenge of keeping customer traffic at a high level.
In 99 case in msia, it took market share away from convenience stores and supermarkets by virtue of their location and pricing. They are everywhere and more convenient than super markets, and very much cheaper than the likes of 7-11. Also Giant being gaint, is not the most well-managed, it worked well for a while but were too slow to react to more nimble competitors, much like how they operationally lost out in SG to SS/NTUC.
There are also many opportunities for a supermarket to uplift their margins. In fact I would like to think Shopee is the online version of how brick and motar supermarkets are run. The main business of groceries is not going to give much margin going forward. And in the case of Shopee, the finance arm/ advertising / other tie ups will be much more lucrative.
Both have the same challenge of keeping customer traffic at a high level.