Giant, Cold Storage turn profitable in Singapore; owner DFI sees growth potential from 7-Eleven
Singapore Exchange-listed DFI owns and runs the Giant and Cold Storage, as well as CS Fresh and Jason’s Deli supermarket chains here
[SINGAPORE] After several years of losses, DFI Retail Group’s supermarket operations in Singapore became profitable in 2024, owing in part to a strategy of shutting some Giant and Cold Storage stores in estates where the brands are no longer relevant, and reopening them in locations with greater sales potential.
Despite returning to the black, DFI expects its supermarket revenue in Singapore to remain stable at best amid heavy competition, and it sees better growth and margins from its 7-Eleven convenience business moving forward.
Singapore Exchange-listed DFI owns and runs the Giant and Cold Storage, as well as CS Fresh and Jason’s Deli supermarket chains here. As at March, it has over 80 supermarkets across all four brands here, with the majority comprising Giant outlets, the group said.
Following the sale of its supermarkets in Malaysia and Indonesia in 2023 and 2024, DFI has been able to focus on refining its Singapore supermarket offerings and ensuring they cater to the distinct needs of customers.
It has done this by curating more products under its Giant and Meadows house brands, which are cheaper than comparable products by other brands, as well as closing outlets that no longer meet the demands of some estates, like its Giant stores in Toa Payoh and Bishan.
DFI also opened new stores carrying products at price points that serve the needs of some areas, like Cold Storage in Pasir Ris Mall and Suntec City, and Giant in Tengah Plantation Plaza. Some supermarket outlets, including Giant in IMM in Jurong East and Simei MRT station, and Cold Storage in Tampines 1, were renovated and upgraded.
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While Giant caters to those who reside in Housing Board estates, Cold Storage appeals to middle-income families in the heartland. CS Fresh outlets are located in trendier estates such as Holland Road and Joo Chiat, while Jason’s Deli is found in high-end malls, DFI told The Straits Times in a November 2024 interview.
A total of 11 Giant outlets closed in 2024, while five new stores under DFI’s stable of supermarket brands opened during the year.
The latest store to close was Cold Storage at Leisure Park Kallang, which shuttered on Mar 10. Between November 2024 and February 2025, no outlets were closed, a DFI spokesperson said.
The move has helped DFI cut the cost of keeping less profitable stores open, and cover major costs such as rent by being more strategic with product offerings. DFI also maintains common supply chains for its products across its four supermarket brands, enabling it to offer goods at various price points while keeping its own costs low.
While DFI will continue with its strategy of evolving to serve distinct segments of the market, competition among its supermarkets and with those operated by rivals FairPrice and Sheng Siong is becoming more intense, prompting the group to focus on the more profitable and fast-growing convenience business.
“Singapore has a diverse customer base, and local supermarkets are increasingly competing on customer relevancy in the form of value – price, quality, (and) range,” the spokesperson said.
Meanwhile, cost of living remains a top concern, making value-driven retail more important. “This goes beyond simply offering the lowest prices. Consumers increasingly look to balance between affordability and quality, and are seeking products at prices that work for them, and with the experience that they desire,” the spokesperson said.
One example of evolving consumer behaviour is the rising demand for convenience store offerings, such as ready-to-eat meals and the option to order or purchase food both online and physically at a store.
Reports cited by DFI showed that consumer behaviour in South-east Asia has shifted, with Singapore leading omnichannel shopping in the region. At the same time, shoppers are also more deliberate about spending, making price and promotions critical.
To take advantage of this shift, DFI has been pumping in resources to develop its 7-Eleven convenience business here. In February, it launched a 7-Eleven app, enabling consumers to order, pay ahead of time and accumulate rewards before picking up the items from over 450 stores across Singapore, among others.
On Feb 10, DFI also announced the appointment of Yoep Man as chief executive for 7-Eleven for South China, Hong Kong, Macau and Singapore. Yoep was the former managing director of DFI’s food business in Singapore, and led the supermarket business to profitability. He has been replaced in the role by Lim Boon Cheong, who joined DFI in 1994.
For the 12 months to Dec 31, 2024, DFI reported US$201 million in profit generated from its main business operations. This represented a 30 per cent year-on-year increase, driven by its supermarket business in Singapore and Hong Kong and the convenience business in China and South-east Asia.
DFI also announced a final dividend of seven US cents, taking total dividends for the year to 10.5 US cents, representing a 60 per cent profit payout.
Its shares closed on Mar 17 at US$2.23, up by more than 6 per cent since its results were announced on Mar 10. THE STRAITS TIMES
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