We are one of Singapore’s largest retailers with over S$578.4 million in revenue for FY2011, and we are principally engaged in operating the Sheng Siong Groceries Chain, including 25 stores all across Singapore as at the Latest Practicable Date.
Our stores are primarily located in retail locations in the heartlands of Singapore, and designed to provide our customers with both “wet and dry” shopping options, including a wide assortment of live, fresh and chilled produce, such as seafood, meat and vegetables, in addition to processed, packaged and/or preserved food products as well as general merchandise such as toiletries and essential household products.
We have also developed a selection of housebrands to offer our customers quality alternatives to national brands at substantial savings. As at the Latest Practicable Date, we offer over 300 products under our 10 housebrands.
To support our retail operations, we also have an extensive distribution network, food-processing facilities, and warehousing facilities. In May 2011, we completed construction of our new corporate headquarters and warehousing and distribution centre at Mandai Link, at an estimated cost of up to S$65 million. Our Mission:
We strive to offer communities in which we operate quality products at reasonable prices together with good service in order to create value to our customers
Our Vision:
Our vision is to be the preferred retailer in the market, starting from Singapore and then further ashore.
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Q: What are some of the Group’s major milestones?
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- Year | Significant Achievements | 1985 | * -------------------------------------------------
Commenced operations with the acquisition of a supermarket in Ang Mo Kio | 1988 | * -------------------------------------------------
Opened 2nd store in Bedok North | 1995 | * -------------------------------------------------
Opened 3rd store in Woodlands with floor space of 6,027 sq. ft * -------------------------------------------------
Believed to be one of the first supermarkets to provide consumers both “wet & dry” shopping options | 1999 | * -------------------------------------------------
Opened 4th store in Loyang Point with floor space of 5,952 sq. ft | 2001-2005 | * -------------------------------------------------
Opened a total of 17 stores, with 13 additional stores in various parts of Singapore, including The Verge, a hypermart, and Sheng Siong’s largest store with floor space of 45,036 sq. ft. | 2007 | * -------------------------------------------------
Opened 4 new stores in Singapore * -------------------------------------------------
Launched "The Sheng Siong Show“, a television game show hosted by Singapore celebrities | 2008 | * -------------------------------------------------
Opened our 22nd store in Yishun with floor space of 10,634 sq. ft * -------------------------------------------------
Launched the first of our housebrands, Royal Golden Grain, for rice | 2009 | * -------------------------------------------------
Introduced the “Sheng Siong Live!” variety programme on Mediacorp Suria during the Hari Raya Puasa festive period * -------------------------------------------------
Opened our 23rd store in Punggol Central | 2011 | * -------------------------------------------------
Opened our 24th store in Teck Whye * -------------------------------------------------
Opened 3 stalls in Elias Mall market * -------------------------------------------------
Completed construction of new Mandai Link Distribution Centre * -------------------------------------------------
Opened our 25th store in Woodlands Ind. Park | * -------------------------------------------------
Q: What are the Group's competitive strengths?
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Established and distinctive household brand name in Singapore * -------------------------------------------------
Long history and reputation for quality products at competitive prices led to the “Sheng Siong” brand name becoming an established brand name in Singapore
Dedicated key management personnel with extensive experience * -------------------------------------------------
Experienced key management team with decades of hands-on experience and in-depth knowledge of the grocery retailing industry
Offering of quality products at competitive prices * -------------------------------------------------
Place great importance on product quality via strict selection of suppliers and quality checks upon the receipt of the products * -------------------------------------------------
Ability to price products competitively and pass on the benefits to consumers through: * -------------------------------------------------
Centrally-controlled purchases and economies of scale via bulk purchases * -------------------------------------------------
Direct procurement from suppliers and contract manufacturers, bypassing the intermediaries and associated costs * -------------------------------------------------
Launch of 10 housebrands which are typically priced lower than comparable international or national brands
Established relationships with suppliers and contract manufacturers * -------------------------------------------------
Established a large network of over 1,000 suppliers and contract manufacturers* and some of these business dealings were formed since 1985
Catering to the needs of customers with a wide product range and extended operating hours * -------------------------------------------------
Extensive knowledge of Singapore’s consumer preferences and consumption patterns enables us to cater to the daily needs of customers by providing a * ------------------------------------------------- wide selection of quality products; and * ------------------------------------------------- selection of certain food products including spices, sauces, noodles and canned foods which we believe are not commonly found in our competitors’ stores * -------------------------------------------------
Each of our stores is open between 15 to 16 hours a day, enabling our customers to purchase groceries and other household necessities at their convenience
Centralised logistics and distribution centre * -------------------------------------------------
Maintain centralised warehouse and distribution centre to meet the stores’ logistical demands Computerised systems facilitate efficient operations * -------------------------------------------------
Computerised systems (including the Management Information System)
Q: Tell me more about the new Mandai Link Distribution Centre
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Our corporate headquarters is currently located at our Mandai Link Distribution Centre and it houses our central administrative, finance, human resource and marketing departments. Construction of our new corporate headquarters and distribution centre at Mandai Link was completed in May 2011, at an estimated cost of up to S$65 million. As at the Latest Practicable Date*, approximately S$49.5 million had been spent on construction costs and approximately S$8.1 million had been spent on land costs. The Mandai Link Distribution Centre was partly financed by the Term Loan and by cash from our Group.
Q: What are the benefits of having the new Mandai Link Distribution Centre?
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Our Mandai Link Distribution Centre will increase our operational efficiency and productive capacity by enabling us to warehouse, process and distribute proportionately larger quantities of goods and benefit from economies of scale in terms of manpower, transportation and fuel costs.
Q: What are the Group’s expansion plans?
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Expand store network * -------------------------------------------------
Continue increasing the number of our stores to enhance economies of scale and further capitalize on our Group’s existing infrastructure * -------------------------------------------------
May open new stores either in Singapore or overseas and may also consider expanding through acquisitions
New Mandai Link Distribution Centre * -------------------------------------------------
Warehouse, process and distribute proportionately larger quantities of goods, and thus benefit from economies of scale in terms of manpower, transportation and fuel costs
Increase productivity, economies of scale, quality and profitability * -------------------------------------------------
Continue to upgrade our computer network systems, including our Management Information System * -------------------------------------------------
Continue to capitalise on our Group’s economies of scale, as well as the strong and well-established relationships we have built over the years with our suppliers and contract manufacturers * -------------------------------------------------
Increase our purchases direct from product sources, in order to eliminate middlemen expenses and reduce costs, as well as to increase our control over the quality and freshness of the products we retail
Expand selection of housebrands and housebrand products * -------------------------------------------------
Strengthen relationships with our existing contract manufacturers to secure more favourable terms and prices * -------------------------------------------------
Establish relationships with new contract manufacturers to increase selection and types of housebrand products
Q: Why should we invest in Sheng Siong?
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Stable business with strong cash flow * -------------------------------------------------
Established & distinctive brand name * -------------------------------------------------
Singapore’s third largest grocery retail chain* * -------------------------------------------------
New distribution centre to improve operational efficiency * -------------------------------------------------
Dividends: Up to 90% of our net profit after tax FY2011 and FY2012 