KUALA LUMPUR: DFI Retail Group has signed an agreement with a leading Malaysian retail group led by local businessman and entrepreneur Datuk Andrew Lim for them to buy all of the former's food businesses in Malaysia including the iconic Giant brand.
The deal is expected to be completed in early March.
Lim, who has an extensive and successful track record in retail leadership, is credited with significantly contributing to the growth and transformation of the retail landscape in Malaysia.
He is currently group deputy chairman of SOGO Department Store Sdn Bhd, as well as the executive chairman of the GAMA Group which owns and operates the iconic GAMA Supermarket & Departmental Store in Penang.
"The local retail group shares similar beliefs as DFI in delivering great quality, service and value to customers.
"By bringing these businesses together, under experienced local ownership, both customers and team members will continue to benefit from the positive changes to Giant, Cold Storage and Mercato that have taken place in recent years, forging an exciting platform for future growth through deep market knowledge, brand investment and competitive strength," DFI said.
DFI said the local retail group would also take on 2,500 team members who currently support the food business.
"DFI is grateful for the dedication and commitment of these team members, and firmly believe that their experience and passion for the brands will offer strong support to the competitive ambition of Datuk Lim and his local leadership team."
DFI added that the team members would also benefit from more career growth opportunities by being part of a broader retail group in Malaysia.
DFI chief executive officer of Southeast Asia Chdris Bush said it was delighted to be able to transition its food business to such a well-respected and successful local retail group.
"This is a win for both our customers and team members - by combining our food business with the local retail group's other retail businesses, this will provide further growth opportunities
for our team members and enable greater competitiveness, service and value for customers in Malaysia."
Lim, meanwhile, said he and the new team members pledged to add value and enhance the respective brand equities of Cold Storage, TMC, Giant and Mercato brand names in Malaysia.
DFI said it remained fully committed to its retail business in Malaysia, sharpening its strategic focus on the fast-growing health and beauty business.
It will continue to wholly own and operate Guardian Health and Beauty stores, which was voted in 2022 by customers in Malaysia as the Number One Retailer there.
"The company has exciting plans over the next two years - continuing to refresh the Guardian store format and significantly expanding its store network (currently now over 500), with the expected creation of hundreds of jobs," it said.