Metro, one of Singapore’s oldest and most recognisable department store chains, has announced that it will close its final two large-format outlets at Paragon in Orchard Road and Causeway Point in Woodlands after their leases expire.
The decision marks the end of Metro’s presence as a traditional department store operator in Singapore, nearly seven decades after it first opened its doors in 1957.
The announcement was made through a filing to the Singapore Exchange on 20 July, with the company citing ongoing challenges in Singapore’s retail industry and changing consumer shopping habits as the key reasons behind the move.
Metro shifting away from traditional department stores
Following a strategic review of its retail business, Metro said it will no longer focus on operating large department stores.
Instead, the company plans to adopt a more flexible retail strategy centred around specialised retail concepts and multi-brand stores designed to better meet modern consumer expectations.
Metro said it is currently in discussions with landlords and evaluating suitable locations for its next generation of retail outlets. Factors such as rental costs, financial viability, implementation timelines and customer demand will be considered before any new stores are launched.
Although the traditional department stores will disappear, Metro confirmed it will continue operating in Singapore through new retail concepts rather than exiting the local market entirely.
Discussions underway with landlords
The Causeway Point outlet is located in a mall owned by Frasers Centrepoint Trust, while the Paragon property is owned by CapitaLand Integrated Commercial Trust (CICT), which recently acquired the mall.
CICT said it intends to optimise and selectively reconfigure parts of Paragon, including the space currently occupied by Metro.
The mall owner also revealed that Metro has expressed interest in remaining at Paragon by introducing new retail concept stores, suggesting the retailer could continue maintaining a presence at the Orchard Road shopping destination in a different format.
Metro added that it is also speaking with other landlords across Singapore as it explores future opportunities.
Company says it must evolve with changing consumer habits
Metro Group Chief Executive Officer Yip Hoong Mun said today’s shoppers have very different expectations compared to previous generations, creating a more challenging retail environment.
He explained that the company needs to refresh its retail strategy to remain relevant, while giving itself greater flexibility to introduce new brands, concepts and business partnerships.
Chairman Tan Soo Khoon echoed the sentiment, saying the board believes the strategic repositioning will better prepare Metro for long-term sustainable growth and allow it to respond more quickly to changing consumer preferences.
The company also said it will continue expanding its retail business through Grand Brands Asia, its joint venture focused on managing international retail brands and immersive shopping concepts.
Metro noted that it is still assessing the financial impact of the transition and has not yet determined how the closures will affect future earnings.
A retail icon with nearly 70 years of history
Metro first opened in Singapore in 1957 at a two-storey shophouse along High Street.
Founded by Indonesian businessman Ong Tjoe Kim, the retailer took its name from Hollywood film studio Metro-Goldwyn-Mayer.
Over the following decades, Metro expanded rapidly across Orchard Road, opening stores at locations including Liat Towers and Supreme House along Penang Road.
The company was listed on the Singapore stock market in 1973 and reached its peak during the 1970s, operating five department stores along Orchard Road.
Metro also played a significant role in introducing several international brands into Singapore, including Toys “R” Us, Kmart, Cartier, Piaget, TAG Heuer and Burberry.
Its flagship Paragon store opened in 1987 and was officially launched by then Second Deputy Prime Minister Ong Teng Cheong.
Expansion into heartlands and gradual decline
As Singapore’s retail landscape evolved, Metro expanded beyond the city centre into suburban malls.
New stores opened at Century Square in Tampines in 1996, Causeway Point in Woodlands in 1998 and Compass Point, now known as Compass One, in Sengkang in 2002.
However, changing shopping trends, the rise of e-commerce and increasing operating costs gradually reduced the demand for large department stores.
These suburban outlets eventually closed, followed by Metro Centrepoint in 2019.
Once the Paragon and Causeway Point outlets shut their doors, Metro’s era as a traditional department store chain in Singapore will officially come to an end, while the company embarks on a new chapter focused on smaller, more specialised retail concepts.