SMU Assistant Professor of Strategy & Entrepreneurship (Education) and Academic Director of Accreditation Terence Fan noted that supermarkets operate on thin profit margins, and believes DFI Retail Group likely decided to exit the supermarket business due to declining margins and intense competition from online retailers and the impact of COVID-19. Asst Prof Fan suggests that Macrovalue's acquisition of DFI is strategic due to the proximity between Singapore and Malaysia, allowing for better economies of scale. He thought the sale price was low but not unfairly so, as DFI would have sold it for a higher price if there was any such offer.
