Don't be fooled by Sheng Siong's 4% sales growth
It was mostly driven by new stores.
CIMB said Sheng Siong's 1Q17's group sales’ 4.1% YoY growth is not something to shout about.
According to the brokerage firm, sales were entirely driven by four new stores (6.2%), flat same-store-sales-growth (SSSG) (0.1%), but dragged down by Loyang (-2.2%) which was closed in April 16 and reopened in February 2017.
The weak SSSG was due to Tampines where renovation works started in late 1Q17, and the weaker sales at its Woodlands store as residents started to moved out due to the government’s selective en bloc redevelopment scheme.