Supermarket chain Sheng Siong has officially broken ground on a new $520 million Integrated Headquarters and Distribution Centre in Sungei Kadut. This project represents the company's largest capital investment to date and is designed to provide the logistics backbone for its future growth. The seven-storey facility, which is expected to be completed in 2029, will span over 61,000 square metres, making it about 2.5 times larger than the company's current warehouse at Mandai Link.
Currently, Sheng Siong operates 90 stores across Singapore. The existing distribution centre was originally built to support approximately 50 locations, and while the company has expanded its capacity through technological upgrades, its growing store network is nearing the facility's limits. The new centre is specifically engineered to support more than 120 stores, ensuring the company can maintain its supply chain reliability as it expands.
Equipped with advanced automation, including robotic storage and retrieval systems, the facility aims to enhance operational efficiency. The company plans to handle a diverse range of products, from fresh produce to dry goods, within multi-temperature storage zones. This investment is seen as a strategic move to improve resilience against supply chain disruptions and rising operational costs in the retail sector.
Sheng Siong has stated that the implementation of these technologies is not intended to reduce its workforce. Instead, the company plans to retrain existing employees for higher-value roles, such as system operators and maintenance technicians. The project has received support from government agencies, including Enterprise Singapore and JTC, and is viewed as a significant step in the company's long-term strategy to remain competitive in Singapore's grocery market.