SINGAPORE: Although DFI Retail Group has decided to offload its Singapore supermarket business to focus on other more lucrative businesses, the new owners of Cold Storage and Giant see new opportunities to expand their supermarket empire.
In fact, Datuk Andrew Lim and Datuk Gary Yap, co-founders of privately owned Macrovalue, which acquired the two supermarket brands from DFI for S$125mil (RM414mil) on March 24, told The Straits Times that the price tag for the two brands in Singapore is reasonable and rational, as it fully reflects the value of the business. They added that no debt was taken to fund the acquisition.
The pair will have high customer expectations to meet, though.
Speaking to Straits Times at the Cold Storage in Novena Square, where she was out shopping for granola, peanut butter and other organic products, Rani, a 48-year-old secretary, said she is hoping that prices for these products, which are unavailable at her regular FairPrice and Giant outlets, will moderate under the new ownership.
“I don’t often come to Cold Storage as the products are pricey, so I hope prices will drop with the acquisition,” she said.
Sivagami, who is 40 and works in administration, said that she is concerned about the continued availability of certain products “that can only be found here”.
“I’m concerned about whether the brands I like will still be available, and am wondering if the new owners will bring in more Malaysian brands.
“The quality of the products is also something I think people might be concerned about,” she said.
Lim, who is a veteran in the Malaysian supermarket industry, said there will be no disruptions at the 48 Cold Storage and 41 Giant outlets his firm now owns in Singapore. “It will be business as usual.”
He added that what consumers can expect at Cold Storage and Giant from now on is a greater assortment of merchandise, more value for money and fresher products from Malaysia.
Cost savings can be achieved for the Singapore business by leveraging Macrovalue’s logistics and supply chain arrangements in Malaysia.
For example, products that are now flown into Singapore due to insufficient volume can be shipped in bulk from Malaysia at a lower cost. This will also enable a greater variety of products to be available at the Singapore stores.
Consumers can also expect to see Cold Storage outlets opening in emerging districts such as those near Lentor Modern.
Lim said several banks in Singapore and Malaysia are already in touch with Macrovalue for potential funding arrangements on this front, and that the company is prepared to invest “as much as needed” to carry out its expansion plans.
At the heart of the acquisition is the ability to combine Cold Storage and Giant in Singapore and Malaysia for better scale and assortment, so that customers can enjoy better value, Lim said.
Macrovalue owns two Cold Storage and 38 Giant outlets in Malaysia, as well as 11 upscale Mercato supermarket outlets.
On top of expanding the number of outlets and range of products in Singapore, Macrovalue will focus on training its supermarket staff for higher productivity and better customer service.
“Besides price and range, Singapore customers wish for better service, like staff who can recognise them by name,” Lim said.
He said there will be no retrenchments, and human resources policies will be refreshed to allow staff more flexibility and work-life balance. — The Straits Times/ANN
