Sheng Siong will need bigger footprint to fend off fresh competition

JUDGING from the headlines - and the flood of orders - the launch of Amazon Prime Now was probably one of the most eagerly anticipated events last week. But with the US retail giant joining the fray, will this spell bad news for local supermarket chain Sheng Siong?

Amazon opened its (digital) doors on July 27 to much fanfare, offering an initial collection of 20,000 items and a promise to deliver in two hours. In comparison, the average supermarket stocks about 50,000 items, market watchers say. Amazon also struggled initially with teething problems, and was forced to stop taking orders on the first and second days of launch as it was overwhelmed by demand.

The high margins of the supermarket business in Singapore have no doubt attracted competitors such as Amazon, notes Smartkarma Insight Provider Viki W.K. Li. Singapore is also seen as the gateway to the potential growth of the Asean market.