Tycoon Li Ka-shing claims competition between supermarkets will remain keen, despite warnings that the big losers after the demise of online home-delivery operators adMart and ezVan are shoppers.
Mr Li heads Hutchison Whampoa, which owns ParknShop, one of the two main supermarket players. He said his chain's profit margins were thin, but declined to say whether prices would be raised.
AdMart and ezVan, owned by media magnate Jimmy Lai Chee-ying, announced their closure on Monday with the loss of 344 jobs. They have lost about $1 billion since launching in June last year.
Mr Li claimed his chain and its rival Wellcome were still facing competition in the form of the No 3 player, CRC. He said it was still possible for other firms to enter the market.
Market analyst Tommy Ho Kin-tak said he thought there would be no immediate price rise. 'I think the economy is slowly recovering, so now is not the time for a drastic increase,' he said.
But in the long run, the market would be increasingly dominated by Wellcome and ParknShop. 'They've shown they have the ability to kick out competitors. The two supermarket giants can quickly catch up on fresh ideas and outdo the one who originates them,' he said.
He cited French chain Carrefour, which was forced out in September: 'Carrefour brought the idea of selling fresh meat and vegetables in supermarkets. ParknShop picked up the idea and have outdone Carrefour.'