After Isetan NEX closure, Metro to close last two department stores at Causeway Point and Paragon but plans new retail concept

SINGAPORE: Metro is set to close its last two department stores in Singapore after the expiry of their leases, marking the end of an era for one of the country’s longest-running retail chains as it embarks on a business transformation aimed at adapting to changing consumer preferences.

The announcement comes just months after Isetan announced the closure of its NEX outlet, which has left the Japanese retailer with just one remaining department store in Singapore.

Isetan had indicated that the closures are due to the continued challenges facing the traditional department store sector amid changing shopping habits and a rapidly evolving retail and e-commerce landscape.

In a statement released on the Singapore Exchange website on Monday (July 20), Metro Holdings Limited said it will close its Metro Department Store outlets at Paragon on Orchard Road and Causeway Point once their existing leases expire.

The company said the move forms part of its long-term development strategy to restructure its retail business in response to evolving consumer demands.

According to Metro, Singapore’s retail industry continues to face operational challenges. Following a review of its retail operations, the company decided to move away from operating traditional large-format department stores and instead adopt a more flexible retail model focused on enhancing customer engagement and introducing innovative retail concepts.

As part of this shift, Metro said it is in discussions with its current landlords, as well as other landlords, to explore opportunities to launch new diversified retail concept stores.

The company has also begun assessing potential locations and business opportunities. Management said it will consider factors including location, lease terms, financial viability, implementation timelines, and other operational and business considerations before proceeding with any new concepts.

Metro did not disclose when the leases for its Paragon and Causeway Point stores will expire.

Metro chairman Tan Soo Khoon said the retailer has been a trusted local brand for more than 60 years but acknowledged that the company must evolve alongside the changing retail landscape.

He said that after a comprehensive review, the Board believes the revised strategy will enable Metro to build a more flexible retail operating model, better respond to changing consumer needs, capture new market opportunities and strengthen the foundation for the company’s long-term sustainable development.

The company added that it is currently assessing the financial impact of the transformation. Based on its preliminary assessment, the Board expects the changes will not have a material impact on the Group’s consolidated net tangible assets or earnings per share for the financial year ending March 2027.