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Singapore supermarket chain Sheng Siong is set to open a new outlet in China, bringing the total number of stores there to five, reported The Business Times.
Including those in Singapore, there will be 72 stores.
Sheng Siong signed a lease agreement for a retail space of more than 31,000 sqft (2,879 sqm) in Kunming, the capital of Yunnan province.
The other four outlets are also in Kunming.
Sheng Siong said the new store is slated to be up and running before the end of the second quarter of 2023.
However, the outlet is not expected to significantly impact the group's financial performance for the financial year of 2022, BT reported.
According to Sheng Siong's financial report and business update in October 2022, its China operations only contributed to 2.6 per cent of the total revenue of S$333.5 million.
Sheng Siong's net profit declined 4.6 per cent, and revenue fell 4.3 per cent in the third quarter as Covid-19 restrictions were eased further.
Sheng Siong's expansion in Singapore and China
Sheng Siong opened its first store in Kunming in 2017.
It was the company's first overseas venture.
The store spanned a retail space of 50,000 sqft (4,645 sqm)
In 2021, the company opened its fourth store with 30,772 sqft (2,859 sqm) of retail space.
"Our business there has continued to be profitable... we will continue to work on nurturing the growth of our supermarket operations, and aim to open more stores in Kunming," Sheng Siong said, according to The Straits Times.
In 2022, Sheng Siong said it aims to open at least three new stores over the next three to five years in Singapore, ST reported.
It is part of the company's continuous effort to expand in Singapore.
The company said it would look out for retail spaces in new and existing public housing estates, particularly in areas where they do not have a presence already.
Top photo from Google Maps.