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SINGAPORE: Supermarket chain Sheng Siong said on Thursday (Apr 23) it will continue to keep essential items affordable despite rising global costs linked to the war in Iran.<\/p>\n
The conflict in the Middle East and blockade of the Strait of Hormuz have led to trade rerouting, higher energy prices and increased freight costs.<\/p>\n
The Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI), in releasing Singapore\u2019s latest inflation figures, had warned that the country\u2019s imported cost pressures are expected to pick up in the months ahead.<\/p>\n
\u201cWhile 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,\u201d said Sheng Siong.<\/p>\n
On potential supply chain disruptions, the supermarket chain said that the more immediate impact of the Middle East conflict is likely to be higher global costs arising from rising fuel, fertiliser and packaging prices.<\/p>\n
Sheng Siong added that it manages supply chain risks through diversified sourcing, direct procurement, and strengthening relationships with multiple suppliers across different countries and regions, thus reducing reliance on any single source or supply route.<\/p>\n
\u201cAt this stage, the group does not foresee any major disruptions that would materially affect the availability of essential products,\u201d said Sheng Siong.<\/p>\n
The supermarket\u2019s comments came in a Singapore Exchange filing on Thursday, in response to shareholder questions ahead of the company\u2019s annual general meeting on Apr 29.<\/p>\n
When asked about plans to open more stores, Sheng Siong said its strategy is guided by factors such as reasonable rent, suitable space configuration, and a strong or potentially strong catchment population.<\/p>\n
And while these factors have historically been more favourable in heartland locations, more opportunities in malls have emerged in recent years, it added.<\/p>\n
Recent openings at Leisure Park Kallang, Kinex and The Cathay reflect this more flexible approach of expanding into areas where its presence is limited, with store formats and product mixes tailored to local demand, the supermarket said.<\/p>\n
\u201cThe group is satisfied with the performance of these stores so far and will continue to consider suitable opportunities in malls where the economics are attractive,\u201d said Sheng Siong, adding that it remains committed to its value-for-money proposition.<\/p>\n
Sheng Siong also said it had secured three new supermarket leases, with operations expected to commence in the 2026 fiscal year.\u00a0<\/p>\n
Tenders for five Housing Development Board (HDB) supermarket locations are still pending results, it added.<\/p>\n
Separately, the supermarket said it is exploring alternative partnerships and delivery platforms after its joint venture with Deliveroo ended in March, following Deliveroo\u2019s cessation of operations that same month.<\/p>\n<\/div>\n