Introduction

In a landmark move, Cold Storage Singapore—the nation's oldest supermarket chain—will be acquired by Malaysian retail giant Macrovalue in a deal valued at S$125 million (US$93 million). This acquisition marks a significant shift in the retail landscape of Singapore, bringing under Macrovalue's umbrella a total of 48 Cold Storage outlets, including its premium CS Fresh and CS Gold brands, as well as popular Giant supermarkets and two distribution centres.

Announcement Details

The announcement was made on March 24 by DFI Group, the Singapore-listed company currently overseeing Cold Storage and Giant. DFI touted Macrovalue as a 'trusted partner' following its successful acquisition of GCH Retail Group, which operates Cold Storage and Giant across Malaysia in 2023.

Transition and Impact on Customers

'Macrovalue's deep understanding of our brands and operational strategies will guarantee a smooth transition in Singapore. Customers can look forward to better service and improved shopping experiences,' said a representative from Macrovalue.

Expected Timeline for Acquisition

The acquisition process is anticipated to finalize in the latter half of 2025. Following the sale, DFI plans to reorient its focus on its Guardian and 7-Eleven businesses. In a recent financial report, DFI revealed that its health and beauty division accounted for a substantial 55% of its total operating profits in 2024, indicating strong growth potential in that sector.

Employee Assurance

A DFI spokesperson reassured that operations will remain 'business as usual' for employees during the transition phase, emphasizing plans to maintain a seamless integration that continues to deliver value to customers.

Enhancements in Other Brands

In its pursuit of excellence, DFI is also enhancing its Guardian and 7-Eleven brands. The Guardian outlet on Holland Road Shopping Centre recently showcased dedicated zones for men’s grooming and dermatological products, improving the shopping experience for diverse customer needs. Meanwhile, 7-Eleven stores are innovating with expanded ready-to-eat options, evidenced by their recent successful redesign of the Cineleisure location, which resulted in a double-digit sales increase.

CEO's Perspective

'Rising food costs and inflation necessitate operational efficiencies, and Macrovalue is strategically positioned to enhance growth in Singapore with its robust procurement power,' stated DFI's CEO, Scott Price.

Historical Context of Cold Storage and Giant

The acquisition carries historical weight; established in 1903, Cold Storage began as a cold storage facility primarily for imported meats and has evolved into a retail titan in Singapore, coming under DFI’s ownership in 1992. Giant, known for its value-driven offerings, made its debut in 2000.

About Macrovalue

Macrovalue, founded just last year in 2022 by entrepreneurs Andrew Lim Tatt Keong and Gary Yap Keng Fatt, is ready to make waves in Singapore's competitive retail scene. Lim, who previously acquired the Sogo department store in Kuala Lumpur, alongside Yap, an expert in supermarket design, intends to drive transformations for Cold Storage and Giant.

Vision for the Future

'We aim to not just preserve but elevate Cold Storage’s legendary 121-year legacy and position Giant as the foremost name in affordable quality groceries,' Lim proclaimed. 'Our goal is to ensure that Cold Storage and Giant remain brands that resonate with Singaporeans’ trust and love.'

Conclusion

As we look forward to what this transition means for Singapore's grocery shoppers, it remains to be seen how Macrovalue will reshape these beloved brands for a new generation of consumers!