Heartland S$2 value shops in Singapore: How is their business model even surviving today?

Even as the retail landscape continues to evolve, heartland value shops have stood the test of time

Have you ever wondered why there are so many value shops in Singapore—especially in the heartlands, just downstairs from your block, selling everything at unbelievably low prices?

I’m not talking about chain stores like Value$ or ABC Bargain Centre with over 150 retail stores across the island. These are the local sundry shops run by uncles and aunties—often your neighbours—selling everyday household items, appliances, and daily essentials.

They’re typically found in HDB precincts and neighbourhood clusters, where you can quickly pop in and pick up whatever you need.

Despite their ubiquity in HDB estates, many remain virtually invisible online, rarely listed on maps or directories, simply because their operations are entirely physical.

Small and simple in layout, they were designed to meet residents’ daily needs conveniently, and provide accessibility to everyone—particularly older residents or those who prefer quick, close-to-home shopping over trips to large malls or supermarkets.

Yet, the seemingly simple mechanics behind these shops are what make them surprisingly sustainable to this day. Here’s how they operate and how they’ve managed to survive over the years.

1. Economies of scale keep prices low

You can find a myriad of items from household tools and kitchenware to toys and everyday essentials at heartland value shops. Often, they sell off-brand essentials that are inexpensive but durable enough to last.

Many of these goods are actually sourced from overseas suppliers in China, Vietnam, and India, and are bought in bulk—often tens of thousands of units—allowing costs to drop to just a few cents per item.

It’s no wonder these value shops can offer a pack of five lighters for only S$1 or a pail for just S$2; even after shipping and logistics, the margins will remain healthy.

2. High turnover makes thin margins work

Local shopkeepers keep markups minimal, ensuring items remain affordable—but how do they sustain this? The key lies in volume: these businesses survive thanks to high product turnover.

Low prices encourage frequent purchases and impulse buys, and the layout of these shops aplifies this effect.

Narrow aisles, packed shelves, and uniform pricing put countless inexpensive items within easy reach, prompting customers to grab more than they planned. It’s a common retail strategy, leveraging psychology to guide customer flow, influence purchasing decisions, and enhance the shopping experience.

This combination of low costs and clever design allows hundreds—or even thousands—of items to move through the store every day, keeping revenue steady despite thin margins.

3. Low operating costs in heartlands

Generally, heartland shops pay lower rent than those in shopping centres.

Many long-standing value shops operate in leased units directly from HDB, where rents have remained relatively stable over the years.

In Q2 2024, rents for these units stood at S$5.36 per sq ft. By comparison, private landlords charged S$7.34 per sq ft, while suburban malls demanded around S$26.50 per sq ft.

This gives them a significant cost advantage compared to business owners renting from private landlords.

Simple layouts and basic shelving also help reduce equipment expenses, while many shops are also family-run even if under a franchise model, keeping staffing costs low. 

4. Hybrid operations: Retail & wholesale

For some of these stores, retail is not the only source of income.

It is possible that they may also supply goods wholesale to pasar malam vendors, small retailers, and home-based sellers.

This dual approach not only boosts revenue but also adds stability, allowing the business to weather fluctuations in retail demand.

Keeping up in the age of e-commerce

The retail landscape is constantly changing with the e-commerce boom over the years—which means that despite surviving over the years, the future still remains elusive for these heartland value shops, especially as they are seeing fewer customers. 

In 2021, HDB found that only 50.7% of residents visited HDB shops or neighbourhood centres at least once a week in 2018, down from 63.5% in 2013, according to Today Online.

A separate study by HDB also found that many business owners reported strong competition from online sites that offer lower prices. In fact, about 82% of HDB households made online purchases in 2023, up from 60% in 2017-2018.

With sellers on e-commerce platforms like Shopee and Taobao offering even lower prices, many local household-item shops struggle to compete. 

At the same time, the industry is grappling with an ageing workforce, as fewer younger Singaporeans are interested in continuing this line of work.

Despite government efforts to help support these HDB shops financially and keep HDB-let shop rents stable, rising rents of privately owned shop spaces and the expansion of chain stores like Value$, which can leverage larger bulk purchases to lower costs further, pose additional challenges. 

Moreover, the layout of Singapore’s new towns like Punggol is evolving from building vibrant clusters of independent retailers into privately owned, multilevel malls dominated by chain stores—a clear sign of the old giving way to the new.

Identity, locality & community

But all is not lost for these stores.

Beyond commerce, heartland value shops also serve as social anchors. They act as casual gathering points, informal community hubs, and spaces where neighbours meet, exchange news, or simply pass the time.

These shops carry a sense of identity, locality, and community memory—especially in older estates. 

At Bendemeer Shopping Mall, for instance, an old open-air neighbourhood centre located near Boon Keng MRT, is packed with heartland shops and benches. As such, it is a common sight to see seniors sitting, shopping, and catching up with neighbours daily.

When purchasing everyday essentials, these shops also accommodate those who may not shop online or pay upfront. Trust plays a central role: owners maintain informal credit systems, carefully noting names, amounts, and addresses in simple notebooks.

So, even as online shopping and supermarkets gain ground, heartland retail continues to offer convenience and social connection, embedding itself in daily life for many—particularly seniors and those who value proximity.

• Read more stories we’ve written on Singaporean businesses here.

Also Read: No longer just a heartland brand: Sheng Siong’s Orchard outlet marks its next big ambition

Featured Image Credit: Bunn via Flickr