Sheng Siong to 'do its best' to keep essential items available & affordable despite Middle East conflict

Local supermarket chain Sheng Siong said it will do its best to keep essential items available and competitively priced, even as the Middle East conflict puts upward pressure on global costs.

The comments were made in a Singapore Exchange filing on Apr. 23, ahead of the company’s annual general meeting on Apr. 29.

Impact of the Middle East conflict

One of the questions raised by shareholders addressed the impact of the Middle East conflict, asking the group if they foresaw potential supply disruptions.

In response, Sheng Siong said it does not foresee any major disruptions that would materially affect the availability of essential products.

"The more immediate impact is likely to be higher global costs arising from rising fuel, fertiliser and packaging prices, rather than direct supply disruptions," it said.

To manage these risks, the group said it has diversified its sourcing, adopted direct procurement and strengthened ties with suppliers across different regions to reduce reliance on any single source or supply route.

"While there may be some upward pressure on costs and prices, the Group will continue to do its best to keep essential items available, affordable and competitively priced for customers," Sheng Siong affirmed.

Plans to expand house brand range

Sheng Siong's gross profit margins hit a record 31.3 per cent in 2025, partly driven by its house brand products, which it said "generally carry better margins than third-party brands".

The group currently carries 28 house brands spanning more than 2,000 products and intends to continue expanding the range in categories with strong customer demand and clear value differentiation.

Opening stores in more malls

Sheng Siong opened a record 12 stores in 2025, bringing its total to 87.

With regard to store expansion, the group said that its store strategy continues to be guided by factors such as reasonable rent and a strong catchment population, and more opportunities in malls have emerged in recent years.

It added that it is satisfied with the performance of recently opened outlets at Leisure Park Kallang, Kinex and The Cathay, and will consider more mall opportunities "where the economics are attractive".

"Regardless of location or customer segment, customers can expect Sheng Siong to remain committed to providing good value for money."

The group said it has already secured three new supermarket leases expected to open in FY2026, while tenders for five Housing and Development Board (HDB) supermarket locations are still pending results.

Competition

When asked about the competition in the local supermarket industry, Sheng Siong said it remains well-positioned.

The group pointed to its "broad grocery assortment, fresh produce offering, competitive pricing, house brands and strong neighbourhood presence" as key strengths, adding that its scale and supply chain capabilities allow it to provide a comprehensive grocery offering against a wide range of competitors.

Impact of the RTS

On the potential impact of the Johor Bahru-Singapore Rapid Transit System Link, Sheng Siong said it remains uncertain and will depend on factors such as exchange rates, relative pricing and consumer preferences.

While acknowledging that some consumers may shop across the border more frequently, the group said convenience and proximity would remain key drivers of grocery shopping behaviour, and that it could adapt its pricing, promotions and product mix to remain relevant to customers where necessary.

Top photo from Sheng Siong's website