Sheng Siong Group has successfully opened three new supermarket outlets in Singapore, with plans to bid for additional sites following the Housing Development Board’s (HDB) announcement of two new supermarket tenders for 2026. The recent openings at Tengah Garden, Sumang Walk, and KINEX Mall mark a significant step in Sheng Siong’s expansion, with three more stores expected to open by August 2025.
The new tenders, announced on 1 July 2025, offer Sheng Siong the opportunity to bid for sites ranging from 5,400 to 9,700 square feet, aligning with the company’s typical store sizes. These sites are expected to be up for tender between March and June 2026. Sheng Siong anticipates opening 10 stores in the fiscal year 2025 and five in 2026, bolstering its market presence.
In May 2025, supermarket industry sales saw a 7% year-on-year increase, partly driven by the government’s $370 (S$500) Community Development Council (CDC) voucher disbursement. Sheng Siong’s sales growth outpaced the industry average by 4% points, aided by its unique CDC voucher strategy. Unlike competitors, Sheng Siong offered weekly discounts on selected items with a lower minimum spend requirement, encouraging repeat visits and increasing average basket sizes.
Despite potential challenges from staffing and rental costs, Sheng Siong remains optimistic about its growth prospects. The company expects operating leverage from its expanding network and strong procurement capabilities to drive a 6% earnings per share compound annual growth rate over the next two years. The company has reiterated its positive outlook, raising its target price to $1.63 (S$2.21), reflecting the robust pipeline and recent store openings.
“`
