Mustafa Centre reportedly opens digital platform to meet growing online demand

After more than five decades of operating exclusively offline, Mustafa Centre has launched its eCommerce website, offering over 3,000 products to meet growing customer demand for online shopping.

According to The Straits Times (ST), the move follows years of requests from customers who wanted the convenience of shopping from home. Mustafa Centre co-founder and managing director Mustaq Ahmad told ST that while the retailer was entering the online space later than competitors, the focus was on ensuring the service remained financially sustainable.

Mustaq reportedly said the company’s approach to eCommerce would prioritise profitability from the outset, with prices set to reflect actual operating costs to ensure the business remains financially sustainable.

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The retailer’s online platform, launched on 28 October, currently offers only a fraction of its total 500,000 products available in-store. There are plans to reportedly add about 1,000 new products each month. Average order values currently stand at around SG$200, said Ronnie Faizal Tan, head of overseas projects at Mustafa, in conversation with ST.

Mustafa’s eCommerce offering includes groceries, household items, perfumes, chocolates and specialty products such as those from Indian dairy brand Amul. Delivery fees are set at SG$10 for orders below SG$150 and free for those above. Same-day delivery will reportedly not be offered yet as the company calibrates manpower and logistics.

For now, the retailer is reportedly using its six-storey complex as a warehouse, with about 10 staff – mainly former cashiers retrained as pickers and packers – fulfilling online orders. Tan told ST that the company may consider automated packing and a dedicated delivery fleet in future if demand increases.

Mustafa Centre, which draws about 15,000 shoppers daily, reportedly hopes the new online channel will serve both its loyal base and new customers who have yet to visit the physical store. Mustaq reportedly said the decision to launch the online platform was driven by long-standing customer demand for greater convenience, as many regulars still preferred shopping at Mustafa but wanted the flexibility to do so from home.

Tan reportedly added that entering the eCommerce space at a later stage allowed the company to learn from the challenges faced by earlier players and refine its logistics and operations strategy, as the industry has since matured significantly.

MARKETING-INTERACTIVE has reached out to Mustafa Centre for more information. 

Mustafa’s move online comes amid broader trends of legacy retailers embracing digital channels. In October, FairPrice Group (FPG) launched 'FPG ADvantage', Singapore’s largest omnichannel retail media network, connecting brands with consumers across shopping, dining, and digital touchpoints.

The platform leverages over 570 locations, including FairPrice supermarkets, Cheers outlets, Unity pharmacies, and Kopitiam food courts, and combines physical and digital assets, from more than 1,000 digital screens and in-store radio across 150 supermarkets to AI-enabled smart carts, over 6,000 Kopitiam tabletop decals, and in-app placements, engaging 1.7 million app users and two million Link Rewards members daily.

FPG ADvantage also allows advertisers to link digital ad performance directly to verified sales within the ecosystem, enabling real-time optimisation and measurable return on spend.

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