Metro to exit large-format department stores as it revamps Singapore retail strategy

The retailer will not renew its existing large-format stores at Paragon and Causeway Point, and will instead shift towards smaller multi-concept formats, specialised retail concepts, and brand partnerships.

Metro Holdings will cease operating its large-format department stores at Metro Paragon and Metro Causeway Point when their existing lease arrangements end, as the Group moves to reposition its retail business in Singapore.

According to the company, the decision follows a strategic review aimed at improving the long-term positioning and sustainability of its retail operations amid changing consumer preferences, shopping habits and market trends.

Metro plans to progressively move away from its traditional department store model towards more flexible formats. These could include smaller-format stores, multi-specialty concept stores, curated retail experiences, and pop-up initiatives, with the aim of improving customer engagement, operational efficiency, and its ability to pursue new retail opportunities.

The Group is discussing the rollout of new multi-concept stores with its existing landlords as well as other landlords. Management has begun assessing potential locations, taking into account factors including suitability, rental terms, financial viability, implementation timing and other operational considerations.

The company also plans to continue pursuing retail opportunities through Grand Brands Asia, its brand-management joint venture, which focuses on international retail brands and immersive concept stores.

The timeline and scope of the new strategy, including the launch of new multi-concept formats, remain subject to further evaluation and detailed execution planning.

Metro said it is currently assessing the financial implications of the transition and is not yet able to quantify the full impact on earnings. Based on currently available information, however, the Board does not expect the changes to materially affect the Group's consolidated net tangible assets or earnings per share for the financial year ending 31 March 2027.

The company said it will provide further updates when there are material developments in the implementation of its retail strategy.

"Consumer expectations today are fundamentally different. 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," stated Yip Hoong Mun, Chief Executive Officer and Executive Director, Metro Group. 

When approached by HRO for a statement, a spokesperson said the Group is currently evaluating the implementation timeline and scope of its retail strategy as part of its ongoing transition towards a more flexible retail approach.

"The Company is also assessing the financial implications of the proposed transition. Further updates will be provided as and when there are material developments."

Lead image / Metro Paragon