At a time where many businesses are crumbling and people are losing their jobs, one trade is booming: the grocery industry.
If you weren’t aware of the Covid-19 outbreak and went to a supermarket before the circuit breaker, you’d probably think they set up some KTV rooms in the back or started selling the latest iPhone.
But no, crowds of people flocked to supermarkets all across Singapore to stock up on groceries despite being told not to do so by the gahmen several times.
You know your business is doing well when you have to impose purchase limits because people are buying too many items at once.
One supermarket, in particular, is doing so well that it’s about to give its staff members a mighty reward.
Sheng Siong Earned So Much Money, All Staff Will Get an Extra Month’s Pay as Bonus
Sheng Shiong’s staff will be rewarded with an additional month’s salary as a bonus as the supermarket operator’s profits jumped by nearly 50%.
According to The Straits Times, Sheng Siong posted a net profit of $29 million for its first quarter ended 31 March, up 49.9% from a year ago.
Their total revenue went up by 30.7% to $328.7 million, mostly because of the Covid-19 outbreak, but also due to their better-than-expected Chinese New Year sales.
Dorscon Orange Led To Surge In Demand
Remember DORSCON?
It seems like a century ago, but panic buying really kicked into gear when the authorities moved the country from DORSCON yellow to orange back in February.
Somehow, a simple change of colour prompted many Singaporeans to stock up on toilet paper and soya sauce.
I’m sure you remember seeing images on social media of crowded supermarkets and empty shelves.
Sheng Shiong observed that this is when demand and sales rose, because more people began eating at home and “loading up their pantry as well”.
That’s a nice way of saying “panic buying like psychos”.
The supermarket operator said their biggest gain came from non-fresh products, presumably items that people could use after staying indoors for three years.
Due to this huge jump in revenue, Sheng Siong said that all staff, excluding directors, will be rewarded with an additional month of salary for working hard during the period of elevated demand in Q1.
Hey, I’ve been working pretty hard too boss, can I get a bonus?
Boss: You should be thankful you still have a job.
But you’re paying me in toilet rolls and soya sauce.
Boss: Those items are prized possessions in these trying times.
Might Open More Outlets
Sheng Siong added that it will look to open more stores in areas where it does not have a presence.
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They were supposed to open an additional 5 outlets, bringing their total to 64 outlets, but the circuit-breaker measures halted this move.
However, when the pandemic dies down and everyone goes back to queuing at new fast food outlets instead of supermarkets, Sheng Siong expects revenue to diminish from the current elevated levels as people use up the items they stocked up on for months.
Panic buying is irrational, but hey, at least some people are getting rewarded because of it.
Also, watch this video to understand why people panic buy toilet rolls (and remember to subscribe to our YouTube channel for more informative and entertaining videos!):