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How Singapore supermarket chain Sheng Siong’s local focus during coronavirus pandemic lifted its fortunes

  • Singapore’s third-biggest supermarket chain made headlines by giving staff massive bonuses as revenues soared during the Covid-19 pandemic
  • But its mass-market strategy means it is seen as a budget supermarket with lower quality products than competitors Cold Storage and NTUC Fairprice

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Shoppers leave a Sheng Siong supermarket at Canberra estate in Singapore. Most of the company’s 64 stores are found in public housing blocks with a high concentration of flats. Photo: Shutterstock

When fresh meat and vegetables run low at home, part-time receptionist Linda Lim usually only has one supermarket in mind for grocery shopping: a Sheng Siong outlet just five minutes away by car.

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For her, the no frills, home-grown supermarket chain checks all the boxes: it offers discounts to older shoppers, has a wide variety of low-priced products and even features a unique wet market-style butcher’s station where she can get a fresh piece of pork or whole chicken cut up to her liking.

But most important, the 61-year-old said, is the convenience. “Since it’s so close to home, I can drop by any time and I don’t have to carry so many heavy groceries at one go.”

Having a supermarket nearby that is open 24 hours is a huge allure, said Teresa Wong, a 62-year-old retiree who visits the same branch as Lim. “Grocery shopping has become very convenient. If I have a busy day, I can pop by at 10 or 11pm. You can’t do that at a wet market.”

Lim and Wong are among the thousands of Singapore residents enticed by Sheng Siong’s hyperlocal approach to grocery shopping, which it has honed since it first opened as a stall selling chilled pork in 1985. Now the country’s third-largest supermarket chain, it has been listed on the Singapore stock exchange since 2011 and its founders – chief executive officer Lim Hock Chee and his two brothers – have become billionaires, with an estimated combined fortune of S$1.57 billion (US$1.18 billion).
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Bolstered by heightened demand for its goods because of the Covid-19 pandemic, the supermarket chain registered more than S$1 billion (US$750 million) in revenue for the first nine months of last year – a 44.6 per cent increase from the same period in 2019, while its net profit leapt 83.3 per cent to S$107 million. It has yet to report its 2020 full-year results.
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