Sheng Siong poised to open more stores this year

Thanks to easing competition and lower rental rates.

With four new supermarket openings in addition to the expansion of their Tampines outlet and reopening of their Loyang store, Sheng Siong is positioned to grow even more in 2017.

RHB cites a potential for new store openings in 2017, which would be a key catalyst for further development moving forward.

“We note that competition for the leasing of Housing and Development Board (HDB) sites have eased. Rental rates have fallen to SGD13-15/sq ft in 1Q17. By comparison, it stood at SGD18-20/sq ft in4Q16. Over the next six months, the HDB has six new sites designated for supermarkets to bid. The challenging retail environment has also freed up more commercial sites in the private leasing space.”

With these observations, RHB predicts that the market will be conducive to Sheng Siong making moves to expand and open new stores in 2017.

Photo grabbed from Sheng Siong's Facebook Page.