Singapore supermarket operator Sheng Siong says it plans to open more stores across the city in the wake of a 7.4-per-cent profit increase last year.
Sheng Siong Group achieved a net profit of S$75.8 million (US$54 million) for the December year on revenue up 11.3 per cent to S$991.3 million, largely due to store network growth.
“Our store expansion plan in Singapore is progressing well,” said CEO Lim Hock Chee.
Five new stores opened last year and two more already this year adding 56,820sqft of trading area and taking the network to 61.
“Moving ahead, we will stay focused on looking for new retail spaces especially in areas where our potential customers reside with an aim in mind to to expand our retail network in Singapore.” The company says it will focus on continuing to look for retail space in new and existing Housing Development Board housing estates, particularly in estates where the group currently has no presence.
“Our key priorities are nurturing the growth of our new stores in Singapore and China while enhancing the gross margin and lowering input cost remain as one of the core areas that we will be working on,” said Lim.
He added the company would seek to adjust stores’ sales mix adding a higher proportion of fresh produce and deriving more efficiency gains in the supply chain in the year ahead.
The company remains optimistic about trading this year despite expectations Singapore’s economic growth will slow to less than 1.5 per cent – potentially even entering a recession – due to the impact of the coronavirus.
The company’s results commentary said retail sales, in particular at supermarkets had “not been exciting” last year and could be negatively affected this year.
“Competition in the supermarket industry is expected to remain keen.”
This year’s openings were a store on the first floor of Block 118 Aljunied Avenue 2, with an area of approximately 18,000sqft on January 1 and at Block 202 Marsiling Drive (5540sqft) on January 11.