Is the worst over for Dairy Farm?

Competition relaxed as Amazon Prime limited its services to paying members.

Analysts are bullish that the worst is over for struggling retail giant Dairy Farm as competition from smaller players and Amazon Prime may be easing and the store is set to recover its lost market share under new leadership.

This comes as Amazon Prime started charging a subscription last December. With the local market remaining averse to paying subscription fees, this should limit Amazon’s momentum and give room for Dairy Farm to step up.

“As overall industry sales have been showing strong growth since 2H17, we believe same-store sales should improve on rising consumer confidence,” said RHB Research analyst Juliana Cai.

The leadership of newly knighted CEO Ian McLeod, who has turned around retail giant Coles, is also set to steer the company to a positive growth trajectory as the company recuperates from major store closures and stock clearances.

The move is projected to boost overall efficiency and productivity especially for the company’s Malaysian operations. “The upcoming opening of a new distribution centre should translate into operational efficiencies this year, while YTD appreciation of the MYR is also positive for Dairy Farm,” Cai added.

The company is also planning to acquire 18.25% stake in a top Philippine retailer for $681.93m as it scours new markets to fuel its comeback.

Also Read

Changi Airports and Hainan Meilan form JV for non-aero services

F&B brands remain key drivers of retail leasing in Q3

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit