Sheng Siong Group

[corydorus]

I doubt Amazon Pay make sense in Asia region or wide spread in America. Many people can just walk out without paying especially when we have so many immigrants on work permits. It only make sense in closed community of certain level of attainment standard of living.

Did u actually watch the video how Amazon Pay works? U have to tap yr phone before u are allowed entry into the supermart. Whatever u take off the shelve it will reflect on an app in yr phone.

Just a quick glance and gut feel. Here's similar comment from a news link i found.
http://www.recode.net/2016/12/5/13842892...ier-paying

"Amazon says it is using a combination of AI, computer vision and data pulled from multiple sensors to allow customers to only be charged for the stuff they grab. It'll be interesting to see how good Amazon is at stopping theft and fraud in these new stores."

[Bibi]

I doubt Amazon Pay make sense in Asia region or wide spread in America. Many people can just walk out without paying especially when we have so many immigrants on work permits. It only make sense in closed community of certain level of attainment standard of living.

Did u actually watch the video how Amazon Pay works? U have to tap yr phone before u are allowed entry into the supermart. Whatever u take off the shelve it will reflect on an app in yr phone.

Just a quick glance and gut feel. Here's similar comment from a news link i found.
http://www.recode.net/2016/12/5/13842892...ier-paying

"Amazon says it is using a combination of AI, computer vision and data pulled from multiple sensors to allow customers to only be charged for the stuff they grab. It'll be interesting to see how good Amazon is at stopping theft and fraud in these new stores."

I think the comment is implying the security measures are good and it is interesting to see how good amazon is at stopping theft. Not its not good at stopping theft.

of course. One can grab a burger, eat it inside the toilet and put the burger's container back to its shelf. Maybe thats the reason y the cameras there are for?

[corydorus]

I doubt Amazon Pay make sense in Asia region or wide spread in America. Many people can just walk out without paying especially when we have so many immigrants on work permits. It only make sense in closed community of certain level of attainment standard of living.

Did u actually watch the video how Amazon Pay works? U have to tap yr phone before u are allowed entry into the supermart. Whatever u take off the shelve it will reflect on an app in yr phone.

Just a quick glance and gut feel. Here's similar comment from a news link i found.
http://www.recode.net/2016/12/5/13842892...ier-paying

"Amazon says it is using a combination of AI, computer vision and data pulled from multiple sensors to allow customers to only be charged for the stuff they grab. It'll be interesting to see how good Amazon is at stopping theft and fraud in these new stores."

I think the comment is implying the security measures are good and it is interesting to see how good amazon is at stopping theft. Not its not good at stopping theft.

of course. One can grab a burger, eat it inside the toilet and put the burger's container back to its shelf. Maybe thats the reason y the cameras there are for?

Well I am not reading it that way. There will be limitation which will not be overcome easily. Currently what I feel it will be limited to controlled variables.

[Big Toe]

Sheng Shiong is like a well oiled machine. Not the biggest player but certainly one that is well managed.
There are only 2 things I could pick on, it is

1. Locally, they are just sticking to their old formula of supermarkets at lower cost HDB shop/estates. The thing is that there are not a lot of shop space or untapped areas which they can have a new shop. They typically need at least ard 300sqm space. They do have other non traditional locations(industrial estate/Shopping centre) but still keeping to the supermarket format. Locally, they will move beyond that if they wish to grow. I.e. compete with 7-11s and cheers in the convenience store space with a different product mix.( Like how they differentiated themselves in the supermarket space by offering live seafood in supermarkets and products unavailable in other supermarkets)

2. Share price not exactly attractive. Just have to wait. if there is one thing I am good at, it is doing nothing and waiting.

[YMPL]

There are many different formats in grocery retailing market. Sheng Siong is playing niche with its "community store" format, which is somewhere between supermarket and convenience store.

NTUC and DairyFarm have been focusing on the mainstream of hypermarket/supermarket/convenience stores, which made room for Sheng Siong in the last decades to grow. Sheng Siong has developed, and became a champion on this segment of business, which widens its moat to fence off the smaller players, and competitive among bigger players.

Sheng Siong has more room for growth domestically, IMHO. Community store format is also viable in China. One of the players, RenRenLe is shifting focus to the format, as a strategy move recently. I am observing the Sheng Siong China venture, which is mall-based, unlike those in Singapore.

I do agree, the convenience store format is the next logical move for Sheng Siong.
 
(long term investor)

[YMPL]

The domestic growth is the top concern of analysts covering Sheng Siong.

Breathing room for Sheng Siong as ‘irrational’ bidding for HDB sites eases

SINGAPORE (March 8): RHB says Sheng Siong’s expansion plans might be back on track as the irrational bidding from small players for Housing and Development Board (HDB) commercial sites seems to have eased.

“While Sheng Siong did not win any the bid for any new sites this month, we note that the small players were not present in that round of bidding,” says RHB analyst Juliana Cai in a report on Wednesday.

In an earlier report, Cai had noted that Sheng Siong was being outmuscled by small supermarket and minimart chain operators in the bidding war for HDB commercial spaces.

Cai says the aggressive bidding to win the space at “exorbitant” rental rates was unsustainable.
http://www.theedgemarkets.com.sg/article...ites-eases

[YMPL]

A threat to Sheng Siong business?

FairPrice to open 6 more budget supermarts
24 Mar 2017 09:00
By Tiffany Fumiko Tay

Budget groceries will soon be more easily accessible, as supermarket chain FairPrice yesterday announced plans to open six more FairPrice Shop stores this year to serve increased demand. It will bring the total number to 12.

The outlets, which are one-tenth the size of its normal supermarkets, are located near the homes of lower-income families and feature a smaller but more affordable range of products that fill half the store.

Source: Straits Times

[weijian]

supermarkets have some kind of "network effect". This is the more true when all of them are quite homogenous in their selection and a large portion of the SG population dont own cars.

My guess is unless one is facing a competitor who is irational (via price reductions, opening new stores to cannibalize for market share or simply exist to create jobs as its sole purpose), else opening of new outlets by competitors should post a smaller concern compared to other kinds of biz.

[YMPL]

supermarkets have some kind of "network effect". This is the more true when all of them are quite homogenous in their selection and a large portion of the SG population dont own cars.

My guess is unless one is facing a competitor who is irational (via price reductions, opening new stores to cannibalize for market share or simply exist to create jobs as its sole purpose), else opening of new outlets by competitors should post a smaller concern compared to other kinds of biz.

Yes, supermarket biz is pretty sticky. The steady-state sales achieved after 2 years, usually stay.

I am referring to a lesser room of domestic growth for Sheng Siong, which is a common concern among analysts and investors.

[Xiaosaint]

Annual report is out!

Seems like they have been having trouble with their China venture. The retail store opening is delayed and is now expected to happen by end of 3Q17.

http://infopub.sgx.com/FileOpen/SSG_2016...eID=448079


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