Sheng Siong shares came under further selling pressure on Monday, falling as much as 8.6% in morning trading after the supermarket operator posted only modest profit growth for the third quarter.
The stock had already declined 4.6%, or S$0.13, to close at S$2.67 on Friday.
For the three months ended Sept. 30, Sheng Siong reported net profit of S$44.6 million, compared with S$43.7 million in the same period last year, representing year-on-year growth of 1.9%.
Quarterly revenue increased 6.2% to S$441.5 million from S$415.5 million a year earlier. The company attributed the improvement to additional outlets across Singapore and stronger sales at existing stores.
However, the group's earnings update also highlighted the challenging conditions facing the grocery retail industry. Management noted that persistent promotional campaigns across the sector could weigh on both sales performance and profit margins.
The competitive environment could become more challenging following the planned launch of the Johor Bahru-Singapore Rapid Transit System (RTS) Link in February 2027. Improved cross-border connectivity may encourage Singapore consumers to shop in Johor Bahru, potentially increasing price competition in categories such as packaged food and household goods.
Sheng Siong said it would continue adjusting its business approach as the RTS Link develops, while monitoring the potential consequences for its operations.
Labour expenses are another source of pressure. The company pointed to higher wage requirements under Singapore's Progressive Wage Model, as well as the National Wages Council's wage guidelines for 2026 and 2027.
The retailer had previously increased pay for its store employees in September 2025 to comply with the Progressive Wage Model requirements applicable to the retail industry.
Despite the challenging operating environment, Sheng Siong intends to pursue further expansion, with a focus on locations where its store presence remains relatively limited.
Chief Executive Officer Lim Hock Chee said following the quarterly results announcement that the company would maintain its expansion strategy in underserved areas to reach more customers.