In addition, citing plans laid down by Andrew Lim, Macrovalue’s co-founder chairman, there will be six new Cold Storage outlets here in Singapore, which is interpreted by the analysts as a continued emphasis on the premium grocery format this brand is known for. Also, Macrovalue’s target to go for an initial public offering in 2028 means it will prioritise “meaningful” earnings turnaround instead of sparking unsustainable price competition, the analysts say.
Macrovalue’s $125 million acquisition of the Cold Storage and Giant supermarket chains from DFI Retail Group (SGX:D01
) has turned the spotlight on this industry of consumer staples. Despite potentially stiffer competition from this new entrant, Sheng Siong Group (SGX:OV8) , as the only listed proxy for investors looking for exposure to Singapore’s resilient and stable supermarket sector, is seen to hold its own as it marks out earnings growth in the market segments it chooses to be in, according to Chee Zheng Feng and Andy Sim of DBS Group Research.
Macrovalue is no stranger to DFI, having already bought over Giant Malaysia from the Hong Kong-based company. To get a pulse on possible changes Macrovalue might implement following the ownership change, the analysts visited three Giant outlets in Johor Bahru. “Transformation remains incremental and localised, rather than a comprehensive store overhaul,” they observe.
