While economic uncertainty was the prevailing theme of 2020 and 2021, it is not entirely correct to associate variety stores with the lower socio-economic classes. Compared to mid-range outlets, retailers targeting low-income earners have struggled to survive due to movement control restrictions and the lack of tourists.
At SGD2 for each item, the business model of leading variety store was innovative when it emerged years ago, which encouraged a number of retailers ranging from supermarkets to independent stores to replicate this sales strategy. Instead of paying exorbitant amounts for household organisers and dividers in conventional retail outlets, one could experiment with different layouts with Daiso's range of products.
Don Don Donki offers a co-branded credit card with Diners Club International, and a cash rebate applicable for future purchases. Loyalty programmes are not commonplace in variety stores, but Don Don Donki is bucking the trend.
Prevailing reluctance regarding e-commerce sales are not unfounded, as operators of variety stores typically compete with low prices and seek fast inventory turnover. However, basket sizes are usually large enough to cover the cost of order fulfilment and subsequent shipping.
One of the key success factors for Don Don Donki in Singapore is the wide range of products the retailer offers, from groceries to toys, with local consumers embracing the Japanese experience of its stores. Daiso’s portfolio on the other hand, ranges from home improvement products to cosmetics at affordable prices.
Physical sales demonstrations are crucial to heightening sales prospects. A mildew and mould remover spray, available at Daiso and Don Don Donki, had a cult-like following among local consumers towards the end of the review period.
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Understand the latest market trends and future growth opportunities for the Variety Stores industry in Singapore with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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Variety stores are chained or independent retail outlets with a primary focus on selling a range of merchandise across several categories. Variety stores are chained or independent retail outlets with a primary focus on selling a range of merchandise across several categories, although they may also sell grocery items. Includes fixed-price stores (e.g. dollar stores) and catalogue showrooms. Example brands include Dollar General, Woolworth (Germany), and Miniso.
See All of Our DefinitionsThis report originates from Passport, our Variety Stores research and analysis database.
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