Here's how Dairy Farm races ahead of its supermarket rivals

It reaches to over 12 countries in Asia-Pac.

According to DBS, Dairy Farm's strong network of stores enhances its competitive position. 

Here's more:

Operations extend over 12 countries in the Asia Pacific across four store formats. With more than 5,000 outlets, there is lower risk of leases expiring at the same time and resulting in disruption in operations and impacting revenue and earnings.

Its extensive network of stores also maximises footfall and enhances its competitiveness in the market.  

Diversified operations
Targeting different customer segments. DFI is more than a pure play supermarket. Its various businesses target different customer segments, from the high end supermarket consumer to the budget customer segment.

Jason’s MarketPlace is positioned as a higher end supermarket, Cold Storage and Wellcome as mid-range supermarkets and Giant Hypermarket is in the budget segment.

DFI’s positioning ensures that it is well covered in terms of market segmentation.

Besides supermarkets and hypermarkets, it also has a presence in the convenience store segment via 7-Eleven and in the health and beauty sector through GNC, Mannings and Guardian.

Operating scale
Large operating scale. DFI operates multiple retail formats from supermarkets, hypermarkets, to health & beauty outlets and convenience stores.

Unlike smaller competitors, its multiple format operation in most markets enables it to achieve better economies of scale through shared infrastructure for logistics, human resources, finance, procurement, and information technology systems within the Jardine Group.

For instance, DFI operates fine food and wine store Oliver's The Delicatessen and a 7-Eleven outlet at both Hong Kong Land’s Prince’s Building in Hong Kong and One Raffles Link in Singapore.

Economies of scale, bargaining power for rental, food and labour.
Bargaining power. We identify DFI’s extensive geographical reach as its competitive edge.

Unlike other smaller competitors, DFI is able to engage in collective negotiations for its various store banners in new mall developments to achieve more effective rental rates.

New consumer brand retailers and principals would also be encouraged to work with DFI as it has strong and established relationships with landlords and advertisers, which would help them to establish a presence and expand as well.