Sheng Siong plans to expand this year
With easing competition and lower rental rates, supermarket group Sheng Siong plans to open more stores this year.
As well as adding four supermarkets, the group plans to enlarge its Tampines outlet and reopen its Loyang store.
Meanwhile, Sheng Siong’s net profit grew 4.4 per cent to S$17.1 million (US$12.2 million) in the first quarter, which it attributes to higher yields from new stores.
However, the group says its bottom line would have been higher had other income improved and operating expenses been lowered. Revenue grew 4.1 per cent to $217 million.
Sheng Siong says comparable same-store sales were lower because of lacklustre demand and lower footfall in areas affected by the slowdown in the oil and gas industry.
The group increased its outlets to 43 during the quarter, up from 39 a year earlier.