Sheng Siong Group

[investor101]

Just wondering, how much more growth will there be in SG? From the basis of store counts Sheng Siong is close to 1/3 of NTUC, but it doesn't make sense for Sheng Siong to open an outlet where NTUC or Cold Storage is already in play.

Is there anywhere that compiles the outlets of all the supermarkets in SG, to check if there's much more areas for growth in SG.

From my knowledge 29/33 of Sheng Siong's outlets are already operating on a 24Hr basis from their FY13. So it seems that revenue may be tough to squeeze from converting stores to a 24Hr basis.

The question would be where's the growth going to come from their Singapore operations?

___________________________________________________________
Finding the Value in a Speculative World
http://www.valueinvestasia.com

I refer to my previous post, post #213, to answer the first doubt on growth in Singapore, beside a simple store number benchmarking with NTUC supermarkets.

You can also refer to Singapore Yearbook 2013, which states 398 supermarket stores in Singapore for year end 2012.

You are right that most stores are operated 24 hours starting 2013, but you might miss the point that it take time to realize its revenue growth. IMO, it takes approx 2 years to realize a new store to its full potential. I reckon the newly 24 hours operation will bring in full revenue by 2015, before the new stores kick-in.

Online store is another engine for growth.

(vested)

The growth of Sheng Siong as a matured supermarket chain will probably mirror that of Singapore's population growth. It stands to reason, since most of their products are groceries and daily necessities. A growth in national population will lead to a corresponding growth in supermarkets to meet market demand.

Whether Sheng Siong can grow in tandem or outpace population growth will depend on its marketing strategy.