Investors wary over Sheng Siong's upcoming store closures

Its share prices have declined since 3Q results announcement.

After Sheng Siong Group’s latest 3Q16 results in late Oct, OCBC Investment Research notes that it has seen a correction in its share price to current levels.

The research house explained that besides the general heightened risk following the US elections and potential repercussions for Singapore’s economy, more specifically to the group, it acknowledges the concerns on growth ahead and the anticipated store closures next year for its ~41.5k sq ft Woodlands store and most likely, the 45k sq ft store in The Verge.

Amid challenging operating conditions, OCBC Investment research also cautioned that competition has also been strong for the local grocery sector and may further increase with new entrants in the market.

Notably, earlier this month, news of Amazon coming to Singapore has made waves in the retail sector, and the company is likely to offer selected services including its AmazonFresh grocery service, it said.