Moreover, grocery sales could be supported by Singapore Budget 2024’s announcement on inflation offset measures such as the CDC vouchers.
The research team at OCBC Investment Research is keeping its “buy” recommendation on supermarket operator Sheng Siong Group
“We view Sheng Siong as a defensive play amid rising inflation and slower economic growth. We believe demand for groceries will continue to normalise in 2024, but could be potentially supported by a shift in consumption patterns towards a focus on “value for money” due to inflationary pressures and a higher cost of living,” say the research team.
