Sheng Siong pounces on rival Giant's expansion weakness

It has secured another location in Queenstown.

The supermarket retailing chain remained aggressive in its expansion as it recently opened the fifth of its new stores this 2015. Sheng Siong also shows no sign of slowing down and expects to open more stores by year-end.

According to Maybank Kim Eng, Sheng Siong's dynamic expansion is a move to capitalise on its rival Giant's achilles heel.

"Giant is still consolidating and has not participated in any bidding for premises in the last two years," Maybank Kim Eng said.

Meanwhile, more gains await Sheng Siong as it is set to benefit from MYR depreciation, as an estimated 10% of its goods is imported from Malaysia.

"MYR has depreciated about 8% against SGD, while the USD has strengthened 3%. The other currencies have been stable," Maybank Kim Eng added.