Cold Storage, Giant supermarket chains in Singapore to be acquired by Malaysian company in S$125m deal

SINGAPORE: Cold Storage Singapore, the country’s oldest supermarket chain, will be bought over by Malaysian retail group Macrovalue in a deal that is worth S$125 million (US$93 million).

The acquisition includes 48 Cold Storage stores under its CS Fresh, CS Gold, Cold Storage and Jasons Deli brands, as well as 41 Giant stores and two distribution centres in Singapore.

Announcing this on Monday (Mar 24), Singapore-listed DFI Group, which currently owns Cold Storage and Giant in Singapore, said Macrovalue is a "trusted partner".

In 2023, Macrovalue acquired GCH Retail Group, the operator of Cold Storage, Giant and Mercato in Malaysia.

"Macrovalue's familiarity with the brands' ethos, operations, and market positioning ensures that the transition in Singapore will be seamless, with customers benefiting from ongoing improvement in service, enhanced retail experiences and continued operational excellence," the Malaysian company said in a separate media release.

The transaction is expected to be completed in the second half of 2025.

DFI said it will pivot its focus in Singapore towards the Guardian and 7-Eleven businesses. The group's health and beauty business represented 55 per cent of its total operating profit in 2024, with DFI saying in a financial report that it is "particularly optimistic" about the growth prospects in that segment.

"This transaction aligns with the group’s strategic focus on delivering long-term value to shareholders," it said.

On whether employees in Singapore will be affected by the acquisition, a DFI spokesperson told CNA on Monday that it will remain "business as usual for now", and the priority was to ensure a "smooth transition for all team members and to continue delivering value to our customers".

Turning to its Guardian and 7-Eleven businesses, the spokesperson added that DFI is "looking at personalised assessment and product recommendations to drive basket size as well as exploring opportunities for service expansion" under its health and beauty section.

The group cited its Guardian store at Holland Road Shopping Centre as an example of service expansion, with its dedicated men's zone, derma skincare section and healthy living zone having been introduced to "better serve customers’ needs".

As for 7-Eleven, DFI said it has a "strong competitive advantage" and will continue to strengthen its store network, innovate in terms of ready-to-eat offerings and grow digitally, such as the newly-launched 7-Eleven app.

"Our 7-Eleven store at Cineleisure is a great example where we expanded our ready-to-eat offerings, created a dedicated food zone and improved our overall range which contributed to a double-digit sales uplift."

DFI's group chief executive Scott Price added: "In today’s environment of rising food costs and inflation, it is essential to leverage scale and operational efficiencies to protect customers from price volatility while maintaining quality and service standard.

"We firmly believe that Macrovalue is ideally positioned to drive the next phase of growth for the Singapore Food business with its expanded scale and procurement power across both Malaysia and Singapore."

Established in 1903 as the Singapore Cold Storage Company, the supermarket chain started out as a cold storage and distribution business for imported meats, dairy and perishable goods. It later expanded to the retail business and was acquired by DFI Retail Group in 1992. 

Its value-driven superstore Giant was established in 2000.

Macrovalue was set up in 2022 by businessmen Andrew Lim Tatt Keong and Gary Yap Keng Fatt.

A former lawyer, Mr Lim entered the retail business in 2000 when he bought into Malaysia's GAMA Group, which operates a departmental store in Penang. In 2002, he became known for buying the iconic Sogo department store in Kuala Lumpur from its Japanese owners.

Mr Yap, on the other hand, worked in supermarkets and specialises in retail design and spaces.

With the latest acquisition, Macrovalue said it will retain Mr Lim Boon Cheong, DFI Retail Group’s managing director for Food Singapore to "spearhead the next chapter of business transformation". He has held several senior positions within DFI Retail Group, including chief operating officer and CEO of Cold Storage Singapore.

"We want to take Cold Storage’s remarkable 121-year legacy to even greater heights and elevate Giant into a leading name in affordable, fresh, and quality groceries," he said. 

"We will ensure that both Cold Storage and Giant continue to be brands Singaporeans love and trust."