Budget retail giant Daiso is set to shut yet another outlet in Singapore, marking its second closure within a span of just four months. The affected store, located at Sembawang Shopping Centre, will cease operations on April 6, 2026, according to a company statement.
The outlet has been a fixture in the northern part of Singapore since 2008 and even underwent an expansion in 2021. That upgrade introduced the Threeppy concept, a sub-brand offering more stylish and trendy household items aimed at younger shoppers. Despite these efforts to refresh its appeal, the store will soon join a growing list of Daiso outlets that have quietly exited the local retail scene.
This latest move follows earlier closures at 100 AM mall and Kinex in Tanjong Katong, signalling a broader shift in the company’s footprint across Singapore.
Shrinking Footprint Despite Strong Brand Recognition
Daiso has long been known for its affordable pricing model, with many products starting from around S$2 and going up to approximately S$20 for more specialised items. Its wide range of goods — from household essentials and stationery to toys and seasonal decorations — has made it a staple among Singaporean shoppers seeking value-for-money purchases.
As of late March 2026, the retailer still operates about 33 stores islandwide. However, the recent string of closures suggests that even well-established discount brands are not immune to the evolving retail landscape.
Industry observers note that rising rental costs, manpower challenges, and the continued growth of e-commerce platforms are placing increasing pressure on physical stores. Consumers are also becoming more selective, often comparing prices online before making purchases, which further squeezes profit margins for brick-and-mortar retailers.
Regional Expansion Continues Despite Local Closures
Interestingly, while Daiso is scaling back in Singapore, it is simultaneously pushing ahead with aggressive expansion plans in other markets. The company has announced intentions to grow significantly in India, with a target of opening up to 200 stores in the long term.
This contrast highlights a strategic rebalancing, where retailers prioritise high-growth markets with lower operating costs and expanding consumer bases. Singapore, while affluent, presents a mature and highly competitive environment that can be challenging for discount retailers to sustain long-term growth.
For local shoppers, the immediate impact may be limited to fewer store locations rather than a complete exit. However, the trend points to a gradual reshaping of Singapore’s retail landscape, where only the most adaptable brands are likely to thrive.
As more retailers reassess their physical presence, consumers can expect continued changes in where — and how — they shop in the years ahead.