Macrovalue Acquires Cold Storage and Giant in Singapore for $125 Million

In a significant shift for Singapore’s retail landscape, Malaysian retail group Macrovalue has agreed to acquire all Cold Storage and Giant supermarket outlets in the city-state from DFI Retail Group for an initial price of $125 million. The deal, announced on March 24, 2025, marks a strategic pivot for DFI as it refocuses on its Guardian pharmacies and 7-Eleven convenience stores, while Macrovalue aims to strengthen its regional foothold in the supermarket sector.

A Major Retail Transaction

The agreement encompasses 48 Cold Storage stores, including brands such as CS Fresh, CS Gold, and Jason’s Deli, alongside 41 Giant outlets and two distribution centers in Singapore. Macrovalue, which already operates Cold Storage and Giant in Malaysia following its 2023 acquisition of GCH Retail Group, will take full ownership of these businesses. The transaction is slated for completion in the second half of 2025, pending regulatory approvals and other customary conditions.

DFI Retail Group, listed on the Singapore Exchange, saw its share price rise by 5.3 percent to US$2.34 by the close of trading on March 24, reflecting investor confidence in the company’s strategic realignment. DFI’s chief executive officer, Scott Price, emphasized the need to adapt to a challenging environment of rising food costs and inflation. “In today’s environment, it is essential to leverage scale and operational efficiencies to protect customers from price volatility while maintaining quality and service standards” he stated.

For Macrovalue, the acquisition is a step toward consolidating its presence in Southeast Asia’s competitive retail market. Co-owner Andrew Lim highlighted the potential for operational synergies, noting that the integration of Singapore’s Cold Storage and Giant operations with their Malaysian counterparts would “enhance operational efficiencies, optimize regional supply chain capabilities, and elevate the overall customer experience.” He also assured continuity, stating, “We will ensure the continuity of local management and operational teams to continuously improve the quality of service for customers.”

DFI’s Strategic Shift

The divestment of its supermarket operations in Singapore comes after DFI returned to profitability in 2024, following years of losses in its food business. Despite this turnaround, the company signaled earlier in March 2025 that it anticipates only stable revenue from its supermarkets due to intense competition in the sector. Instead, DFI sees stronger growth potential and better margins in its convenience store segment, particularly through its 7-Eleven brand, which operates over 450 stores in Singapore alongside more than 120 Guardian pharmacies.

Beyond Singapore, DFI maintains a significant presence in markets such as Thailand, Hong Kong, and the Philippines, where it will likely channel resources to bolster its convenience and pharmacy businesses. This refocus aligns with broader trends in the retail industry, where convenience stores often offer higher profit margins compared to supermarkets, which face pressure from both rising costs and aggressive pricing strategies by competitors.

Analysts suggest that DFI’s exit from the supermarket space in Singapore could allow it to streamline operations and invest in digital transformation or expansion of its convenience store network. However, some industry observers question whether this move might cede valuable market share to competitors like FairPrice, Singapore’s largest supermarket chain with 164 outlets under various formats, or Sheng Siong, which operates 77 stores and continues to expand, with its latest opening in Punggol in March 2025.

Macrovalue’s Vision for Growth

Founded in 2022 by entrepreneurs Datuk Lim and Datuk Gary Yap, Macrovalue has quickly emerged as a key player in Malaysia’s retail sector. Its acquisition of GCH Retail Group in 2023 gave it control over Cold Storage and Giant in Malaysia, and the Singapore deal represents a logical extension of its regional ambitions. By integrating operations across the two countries, Macrovalue aims to improve procurement and supply chain efficiency, potentially lowering costs and offering better value to customers.

Macrovalue has pledged a “seamless” transition for Singapore customers, with Lim Boon Cheong, the current managing director of DFI’s Food Singapore unit, remaining at the helm of Cold Storage. With over 30 years of experience in the industry, including senior roles at Cold Storage Singapore and 7-Eleven operations across multiple markets, Lim’s continued leadership is seen as a stabilizing factor during the ownership change.

The Malaysian group’s strategy appears to focus on maintaining local expertise while leveraging its regional scale. This approach could help it navigate Singapore’s highly competitive supermarket landscape, where consumer expectations for quality, variety, and affordability remain high. Yet, challenges may arise if integration efforts disrupt service or if Macrovalue struggles to adapt to local tastes and preferences that differ from its Malaysian operations.

Impact on Singapore’s Retail Landscape

Singapore’s supermarket sector has seen dynamic shifts in recent years, with players like FairPrice, under the National Trades Union Congress cooperative FairPrice Group, dominating the market. FairPrice operates not only supermarkets but also convenience stores like Cheers and FairPrice XPress, as well as Unity pharmacies, bringing its total outlet count to around 400. Meanwhile, Sheng Siong continues to grow its footprint, capitalizing on demand for affordable groceries amid inflationary pressures.

For consumers, the acquisition raises questions about potential changes in pricing, product offerings, and store experiences under Macrovalue’s ownership. While the group has promised to enhance value through supply chain improvements, some shoppers remain cautious. On social media platforms like X, opinions are mixed, with some users expressing hope for better deals while others worry about the loss of a familiar local brand identity tied to DFI’s long history in Singapore.

In 2024, DFI’s supermarket operations saw both closures and openings, reflecting ongoing efforts to optimize its portfolio before the sale. A total of 11 Giant outlets shuttered during the year, while five new stores opened, including CS Fresh locations in Chancery Court and New Bahru, Cold Storage in Pasir Ris Mall and Suntec City, and a Giant store in Tengah Plantation Plaza, the first supermarket in Tengah’s Plantation Village. Renovations were also carried out at several outlets, such as Giant at IMM in Jurong East and Cold Storage in Tampines 1, though the Cold Storage at Leisure Park Kallang closed as recently as March 10, 2025.

Broader Economic Implications

The Macrovalue-DFI deal reflects broader trends in Southeast Asia’s retail sector, where consolidation is increasingly seen as a means to achieve economies of scale amid rising costs and digital disruption. Supermarkets face not only competition from traditional rivals but also from e-commerce platforms and delivery services that have gained traction since the pandemic. For Macrovalue, acquiring established brands like Cold Storage and Giant offers a foothold in Singapore’s mature market, but it will need to innovate to retain customer loyalty.

For DFI, the sale allows a sharper focus on segments with higher growth potential, particularly convenience stores, which cater to fast-paced urban lifestyles. However, the company’s long-term success will depend on its ability to differentiate its Guardian and 7-Eleven offerings in a crowded market. Singapore’s retail environment remains fiercely competitive, with both local and international players vying for consumer spending.

Economists note that foreign acquisitions like Macrovalue’s can bring benefits such as increased investment and job creation, but they also underscore the importance of regulatory oversight to ensure fair competition. Singapore’s authorities are likely to scrutinize the deal to prevent any negative impact on consumers or local employment, though no official statements have been issued as of yet regarding potential conditions or concerns.

Looking Ahead

As the transaction moves toward completion in late 2025, both DFI and Macrovalue face critical periods of transition. For DFI, the challenge lies in capitalizing on its streamlined portfolio to drive growth in its remaining businesses. For Macrovalue, integrating Singapore’s Cold Storage and Giant operations while maintaining service quality will be key to winning over a discerning customer base.

Meanwhile, Singapore’s shoppers watch closely, hopeful that this change in ownership might bring fresh offerings or competitive pricing, yet mindful of the risk that a regional player may not fully grasp local nuances. As the retail landscape continues to evolve, the Macrovalue acquisition could set a precedent for further consolidation in the region, reshaping how consumers access everyday essentials.