Sheng Shiong struggles to open new stores

Zero new outlets in 2013.

It’s tough in supermarket land as Sheng Shiong is finding out.

After opening no new stores last year, the company says it remains open to the possibility but is finding it difficult to justify the cost. So what does this mean for the upstart supermarket brand?

It is also besieged by online shopping competitors such as cost storage and the new Redmart. Sheng Shiong is still stuck in pilot projects when competitors are challenging with fully ready businesses. Its pilot phase in e-commerce has expanded to other areas with a larger base of customers, of which most are recurring. OCBC thinks that if this is executed well it will make up for the challenges in opening new stores. "However, we note that it will require a shift in local shopping habits."

Sheng Shiong is also struggling to break into Malaysia, where management mentioned they are still looking for a partner to operate in Malaysia.