Page 1 of 3

Why is there no Costco, Tesco etc. in Singapore?

Posted: Mon, 22 Aug 2011 4:12 pm
by Brah
Seems like there should be one here, with 7 in Korea, a few in Thailand, Malaysia, etc.

Posted: Mon, 22 Aug 2011 4:33 pm
by ScoobyDoes
Tesco is not in Singapore.

This is very much a closed market, as it were, given NTUC (government) operations on one side and Dairy Farm on the other (Giant, Cold Storage, Shop'n'Save, Guardian, 7-11 etc.). Dairy Farm being part of Jardine Matheson out of HK the relationship goes back a loooooong way.

Posted: Mon, 22 Aug 2011 5:01 pm
by JR8
ScoobyDoes wrote:Tesco is not in Singapore.

This is very much a closed market, as it were, given NTUC (government) operations on one side and Dairy Farm on the other (Giant, Cold Storage, Shop'n'Save, Guardian, 7-11 etc.). Dairy Farm being part of Jardine Matheson out of HK the relationship goes back a loooooong way.
This reminds me of Walmart in Germany. They opened some stores a few years ago. A trade organisation representing existing retailers took court action on the grounds that Walmart are anti-competitive (i.e. too competitive), and won. Walmart sold up to Metro-group and shpped out. Bye bye!

p.s. Same cosy arrangement appplies to buying medicine here. You can only get them from apothecaries. So there is no concept of Guardian or Watsons in SG, or Boots and Superdrug in the UK. There is no price competition of own brands, or 'generics'. You have to go to your neighborhood one branch apothocary. You want a pack of 12 aspirin?.... sure here, Bayer.... that'll be euro8, thanks.

Posted: Mon, 22 Aug 2011 5:20 pm
by x9200
So what's Carrefour doing here?

Posted: Mon, 22 Aug 2011 5:49 pm
by technoviking
x9200 wrote:So what's Carrefour doing here?
losing money.

also, first post hi!

Posted: Mon, 22 Aug 2011 10:51 pm
by aster
JR8 wrote:This reminds me of Walmart in Germany. They opened some stores a few years ago. A trade organisation representing existing retailers took court action on the grounds that Walmart are anti-competitive (i.e. too competitive), and won. Walmart sold up to Metro-group and shpped out. Bye bye!

p.s. Same cosy arrangement appplies to buying medicine here. You can only get them from apothecaries. So there is no concept of Guardian or Watsons in SG, or Boots and Superdrug in the UK. There is no price competition of own brands, or 'generics'. You have to go to your neighborhood one branch apothocary. You want a pack of 12 aspirin?.... sure here, Bayer.... that'll be euro8, thanks.
And I though communism in Europe was only restricted to Scandinavia. :)

Posted: Sun, 18 Sep 2011 1:31 am
by nakatago
technoviking wrote:
x9200 wrote:So what's Carrefour doing here?
losing money.

also, first post hi!
Image

:roll:

Posted: Sun, 18 Sep 2011 1:57 am
by JR8
^^^^^^ Not sure what the connection to the topic is :)

p.s. I've seen it before, isn't he some nutso German called 'Techno-viking' or something who does this routinely at Love Parade and other street festivals?

Oh hang on, I get it!! :lol:

Posted: Sun, 18 Sep 2011 7:51 am
by Calmday
Singapore prides its self in being the most business friendly place on earth LOL. Just don’t dare get in to competition with the gov or anyone who is well connected.

Posted: Sun, 18 Sep 2011 7:58 am
by JR8
Calmday wrote:Singapore prides its self in being the most business friendly place on earth LOL. Just don’t dear get in to competition with the gov or anyone who is well connected.
Shhh.... that's the secret squirrel bit you're not meant to mention.

p.s. You'll be on about 'the myth' of world record political salaries next :wink:

Posted: Mon, 19 Sep 2011 6:33 am
by aster
If you want to look at lack of competition just look at the telecoms sector. :)

Posted: Mon, 19 Sep 2011 10:34 am
by Strong Eagle
I think it has more to do with the gahmen not wanting to upset the 'mom and pop' operations here... and it has some merit.

With lots of small stores, if a recession occurs, the income is less for each shop owner but they don't necessarily close their doors... they just make do with less.

But when you put in a big box store, the first thing that happens in a downturn is layoffs... and I don't think Singapore wants to see that.

I understand it was quite an uphill battle to put in the Carrefours, and even more of a battle to open a second Ikea store.

Posted: Mon, 19 Sep 2011 10:58 am
by sundaymorningstaple
And K-Mart only lasted around 3 years from 1994 to 1997 if I remember correctly.

Posted: Mon, 19 Sep 2011 12:44 pm
by x9200
Also, such chains in offering competitive prices rely vastly on the local market and you need a critical mass of local manufacturers for this.

Posted: Wed, 21 Sep 2011 7:31 pm
by movingtospore
I don't think it's local manufacturers that result in competitive prices, it's demand, local tax structures, etc. Most manufacturing is in Asia ... and yet prices in SP are vastly higher than just about anywhere - in the region and beyond. Maybe a few places in Europe are this bad...also very controlled markets.

Somebody is getting rich on that and it sure isn't me. Does the government really care about the mom and pops? I kind of doubt it. More likely they make it too difficult for big american retailers to move in.

Perhaps one day Malaysia will wake up and realize they have a golden opportunity just across the bridge.