Even with the sluggish retail sales numbers published by the Department of Statistics, Singapore’s supermarket giant Sheng Siong reported a considerable improvement in earnings for 3Q16.
According to the group’s announcement, its net earnings jumped $15.6m, from $14.5m recorded last year.
This came after its headline increased marginally by 1.2% to $202m mainly driven by new stores.
“But (this) was offset by the temporary closure of the Loyang Point store and a contraction in comparable same store sales of 1.15% caused mainly by poor festive sales during the Chinese Seventh month and sluggish sales in September,” Sheng Siong noted.
Excluding the closure of the said store, revenue would have grown by 4.2%.
Looking forward, the group expects the supermarket industry to remain competitive, as consumers continue to be even more cost conscious.
“The Group is still looking for suitable retail space particularly in areas where the Group does not have a presence. However, competition for retail space, particularly for new HDB shops is expected to remain keen, which have escalated bidding prices,” the group said.