SINGAPORE - Six bakeries along Bendemeer Road have opened within a hundred meter radius of each other, triggering a price war among three of the bakeries, with prices for a bun dropping as low as 60 cents.
Shin Min Daily News reader Mr Liu, 62, said that a sixth bakery has opened in the row of shops between blocks 25 and 27. "There were only two bakeries initially, but there was a sudden increase in the past year and the competition looks quite intense," he said in Mandarin.
When Shin Min reporters visited the area, the bakeries were stocked with a wide variety of bread, and some had reduced their prices by half.
Two-week-old Baker Talent, which has more than 10 types of bread retailing for less than a dollar, had a queue of more than 15 customers.
Mr Liu, 42, the store's supervisor, expressed confidence in edging out other bakeries amidst the stiff competition.
"There is a good flow of customers here, including the eldery. I believe they can benefit from the low prices," he said in Mandarin, adding that they will continue with the promotion for the time being.
Mini Bread Factory's supervisor Mr Huang, 50, said that business has dropped by 20 per cent over the past two to three months. In a bid to attract more customers, they launched a promotion three weeks ago selling bread for $1.
Some shop owners said that instead of reducing prices, they have decided to come up with more varieties of bread.
One of the supervisors of a bakery said that their business has dropped by 60 per cent, but they will be launching new types of bread, and may even consider opening on public holidays to attract more customers.
One bakery unaffected is Yuen Long Hong Kong Pastry & Buns. Their supervisor Mr Wu, 48, said that they manage to sell the 3,000 over buns and pastries that they make daily.
This article is translated from Shin Min Daily News. It was first published on Oct 10, 2013.