DFI Retail Group says it will continue to invest in Hong Kong supermarkets

DFI Retail Group, a Hong Kong-based company, plans to keep investing in new Hong Kong supermarkets despite cautious consumers, according to Darren Chan, the group's managing director for food in Hong Kong and Macau. Chan, who oversees supermarkets including Wellcome and Market Place, said DFI is also "looking for opportunities to strengthen" its network where customer demand and long-term returns are attractive.

The company plans to open new stores in areas that can better serve local communities and modernize its existing stores to stay relevant to evolving customer needs.

DFI's network of supermarkets, which includes Wellcome, Market Place, 3hreesixty, and Oliver’s, operates more than 325 stores serving over 14 million customers monthly. In the first half of the year, the company's food division reported a 1.4% growth in sales to US$1.14 billion, though same-store sales decreased by 0.2%. To boost sales, DFI is adopting new strategies to lower prices and increase its product offerings, such as importing from more countries.

In a strategic move, DFI Wellcome and Market Place have partnered with CJ Foods, South Korea's largest food company, to enhance their Korean food offerings. This collaboration is expected to generate over US$22 million in sales. Additionally, Market Place launched "Taste of Australia," a gourmet food fair showcasing over 70 Australian brands and 200 new products, including fresh produce, wines, and snacks.

Chan emphasized that DFI's real estate strategy for its stores will remain flexible, depending on factors like catchment demographics, customer shopping habits, and local market opportunities. Hong Kong's overall retail sales grew by 8.5% year-on-year in the first eight months of the year, but standalone supermarket sales only increased by 1.4%.