Time is of the essence for Sheng Siong as it cultivates online initiatives

Online sales are currently in their infancy.

Staying put is a gigantic blunder for any business, especially in this fast-paced, technologically advanced present. With a better-than-expected showing by the retail company, it can’t afford to be complacent as its online initiatives remain a gold mine to be tapped.

According to analysts from DBS, instead of playing catch-up, Sheng Siong could bide its time for a short while as online sales are still in its infancy in Singapore.

“Developments in China continue to be on securing suitable sites in Kunming. As the grocery retail scene in China is facing intensifying competition, especially from online channels, we also believe time is on Sheng Siong’s side to land the ideal location,” DBS says.

Meanwhile, Sheng Siong is also appearing to inch closer to its target of 50 stores in Singapore as it is projected to have a total of 39 by year-end.

“We see margins normalising going into 4Q15. Input prices for fresh food should ease as logistical disruption and the haze clears up and pricing should be less aggressive post SG50 and seventh month promotions,” DBS added.