Dairy farm to sell Singapore supermarket business

DFI Retail Group, the parent company of well-known supermarket chains Cold Storage, Giant, and Jasons, is set to be acquired by Malaysian retail group Macrovalue in a landmark deal valued at S$125 million. This transaction marks a significant shift for the Singapore-based retail giant, which has been a fixture in Southeast Asia’s grocery landscape for decades. The sale encompasses all Cold Storage and Giant outlets in Singapore, signaling the end of an era for DFI’s once-dominant presence in the city-state’s retail sector.

The decision comes after years of declining profits, driven by fierce competition from e-commerce platforms, discount retailers, and shifting consumer habits. These challenges have eroded DFI’s market share in Southeast Asia, prompting a comprehensive strategy reset under the leadership of Scott Price, who assumed the role of Group Chief Executive in August 2023. Price, a seasoned retail veteran with prior experience at Walmart and Tesco, has spearheaded a bold pivot to refocus the company on its core markets of Hong Kong and mainland China. This move builds on DFI’s established strengths in those regions, where it operates a robust portfolio of brands including Wellcome supermarkets, Mannings health and beauty stores, and 7-Eleven convenience outlets.

The divestment of its Singapore grocery operations follows a similar pattern seen in 2023, when DFI sold its Malaysian retail business—including Giant, Cold Storage, and Mercato stores—to Macrovalue Sdn Bhd. While the financial specifics of the Malaysian deal were not widely disclosed, the S$125 million valuation for the Singapore assets underscores Macrovalue’s ambition to expand its regional footprint. Industry analysts suggest that Macrovalue, a rising player in Malaysia’s retail scene, sees untapped potential in integrating these iconic brands into its operations, potentially leveraging economies of scale and local expertise to revitalize their performance.

For DFI, the sale represents more than just a financial transaction—it’s a strategic retreat from underperforming markets to double down on growth opportunities elsewhere. In Hong Kong and China, the company is betting on rising demand for convenience retail, premium grocery offerings, and health and beauty products, areas where it has historically excelled. The proceeds from the Singapore divestment, combined with earlier sales, are expected to bolster investments in digital transformation, store modernization, and private-label expansion in these key markets. Scott Price has emphasized sustainability and innovation as cornerstones of this reset, aiming to position DFI as a leaner, more agile competitor in an increasingly crowded industry.

The broader context of DFI’s challenges highlights the pressures facing traditional brick-and-mortar retailers. In Singapore, the rise of online grocery platforms like RedMart and Amazon Fresh, alongside budget-friendly chains like Sheng Siong, has squeezed margins and foot traffic for legacy players like Cold Storage and Giant. Jasons, once a premium grocery destination, has struggled to maintain relevance amid evolving consumer preferences for affordability and convenience. These dynamics, coupled with inflationary pressures and supply chain disruptions in recent years, have made Southeast Asia a less viable battleground for DFI’s ambitions.

Under Scott Price’s leadership, DFI Retail Group is charting a new course, one that prioritizes resilience and growth in Hong Kong and China over a sprawling, hard-to-manage Southeast Asian footprint. The S$125 million deal with Macrovalue is both a pragmatic acknowledgment of past struggles and a calculated step toward a more focused future. For customers and employees in Singapore, the transition marks a bittersweet turning point, while for DFI, it’s a chance to redefine its legacy in the markets that matter most.