Super Duper, a Western-styled 24-hour supermarket that first launched in early 2015, is planning to open its second branch in June in response to a strong demand for clean wide aisles and a vast array of local and imported grocery products, including hard-to-find items, a company executive said yesterday.
Canadian owner Kirk MacManus said the new Phnom Penh branch on Sothearos Boulevard near the intersection with Sihanouk Boulevard would have a slightly smaller footprint that its first store on Street 488 in the capital’s Boeung Trabek commune.
“Our first location did so well that we needed to expand and go to areas where we know our customers are well represented,” he said. “We will carry all of the same products that we do in our Boeung Trabek branch.”
MacManus said Super Duper’s growing customer base of locals and expats has helped increase efficiencies and lower unit costs on the items it stocks. A second branch should further improve prices.
“As we have continued to grow in scale with increased purchasing power, we have been able to negotiate with suppliers and are constantly trying to reduce prices of our products,” he said.
Despite the presence of other supermarket chains in the capital, such as Lucky, Bayon and Thai Huot, he remains confident that demand for Western-style supermarkets still outstrips supply.
“All I can say is that in the coming years we plan to have a couple more branches throughout Phnom Penh,” he said. “There is still plenty of room for growth.”
James Hodge, a surveyor at property firm CBRE Cambodia, said that as incomes grow and the middle class expands, it is typical to see an “associated growth in demand for formalized supermarket formats, which offer convenience and an expectation of better quality goods”.
He added that the current supermarket sector appears to be undersupplied, with modern-style grocery stores spread thinly throughout the capital.
“This dispersed pattern is largely expected to remain into the future as supermarket growth will predominantly follow the pattern of shopping mall developments,” he said.
However, as competition increases, Hodge said operators will need to differentiate themselves to win over a dedicated customer base.
“This will mean offering a wider choice of products, improving the retail experience and possibly cutting margins to compete on price,” he said.