Singapore’s Metro will close its department stores at Paragon, on Orchard Road, and Causeway Point when their leases expire, as it shifts away from the traditional large-format department store model.
The listed company says it plans to introduce a more flexible retail model centred on smaller-format and multi-concept stores.
“The group has commenced evaluating potential locations and opportunities with existing landlords as well as other landlords for the rollout of its new retail multi-concept stores,” Metro said in a stock exchange filing.
The retailer said it is assessing factors including location, rental terms, financial viability, and implementation timelines before finalising its plans.
“Consumer expectations today are fundamentally different,” said group CEO and executive director Yip Hoong Mun.
“Amidst the challenging operating environment, our refreshed retail strategy is designed to meet customers’ evolving expectations while having greater flexibility to introduce new concepts, brands, and partnerships.”
Meanwhile, chairman Tan Soo Khoon said the board believes the repositioning will create a more agile retail platform capable of supporting the company’s long-term growth.
“As the retail landscape continues to transform, it is important that we evolve alongside it,” Tan added.
Metro has been refreshing its offering over the past year through partnerships and experiential concepts, including collaborations with South Korea’s Shinsegae International and the launch of SleepLab and MiniMuse.
Despite those initiatives, its retail business reported a net loss of US$8.8 million for the year ending March 31, citing lower revenue, weaker margins, and impairment charges.
Meanwhile, CapitaLand Integrated Commercial Trust (CICT), which acquired Paragon earlier this month, said it is reviewing plans to optimise and selectively reconfigure parts of the Orchard Road mall, including the space currently occupied by Metro.
“Metro has expressed interest in remaining at Paragon under new retail concept stores, and discussions are ongoing,” said the company.
“Feasibility studies are currently underway, and we will share further details once plans are finalised.”
- Further reading: Metro Retail’s Q1 earnings surge as food sales drive growth.
