Sheng Siong Group ends FY2018 with strong sales

Date : 28 February 2019

Revenue for the supermarket chain increased by 7.4% versus last year.

Store openings boosts growth

Singapore supermarket operator Sheng Siong Group reported positive growth for 2018, with revenues of SGD890.9m, an improvement of SGD61m versus last year. Out of the 7.4% increase in revenues, 10.1% was contributed by new store openings. In total, the retailer added 10 new stores to its network. Net profit grew by 1.4% and closed at SGD70.5m.

The main source of revenue growth was attributed to Sheng Siong’s new stores. Comparable same store sales actually decreased by 0.4% for the retailer.

Expansion in spite of a challenging retail environment

The Group will continue to look for opportunities to expand its store network. It is already targeting six sites that have recently been released for tender by the Singapore government. High competition for retail space in new residential areas, the rise of ecommerce players and slowdown of the country’s economy are expected to provide a challenging environment.

Chief executive officer Lim Hock Chee said, “Besides nurturing the growth of our new stores in Singapore and China, we will continue with our efforts in enhancing the gross margin via more efficiency gains in the supply chain and higher sales mix of fresh produce. We will remain vigilant on costs.

More information about the Sheng Siong Group can be found here.

 

 

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