Sheng Siong is in direct competition with 2 other main key players in the market – Dairy Farm International Holdings (which operates Cold Storage and Giant) and NTUC FairPrice. With a market share of 19.5%, the company is on par with Dairy Farm (18.
9%) but pales in comparison against NTUC FairPrice’s market share of 56.0% (MayBank Kim Eng Research, 2018). Moreover, it is important to note that the supermarkets and hypermarkets in Singapore captures 64.3% of the grocery retail industry, with the remaining 35.7% consisting of convenience stores and traditional grocery retailers (MayBank Kim Eng Research, 2018), thus adding on to the competition. The supermarket industry has also been growing steadily in recent years, with a 3.
7% increase in its retail sales index in 2017, as opposed to -0.6% in 2016 (Singstat). Companies find opportunities in periods of high or steady growth to gather more sales to attain higher market share. The implementation of self-service counters and increasing payment options, coupled with the competitive prices of the products, adds on to the intensity of the rivalry.