Sheng Siong expected to nab one more tender win

It has so far won two new supermarkets this year.

Supermarket giant Sheng Siong is expected to end the year with one more new tender win with the ample supply of supermarket sites.

According to UOB Kay Hian, the group has managed to win two new supermarkets this year which will add 16,000 sqft. to Sheng Siong's total retail space.

Analyst Nicholas Leow noted that their channel checks indicate a healthy supply of supermarkets up for tender over the next six months through the open tender process.

"Furthermore, management has also indicated to us that two large supermarkets are currently up for tender through the closed tender process," Leow noted.

The analyst explained that these closed tenders are an invitation to the large supermarket players like Sheng Siong, NTUC and Cold Storage to bid for larger HDB commercial supermarket units.

These units are typically in excess of 10,000sqft.