Metro will shut down stores in Orchard & Woodlands, its last department stores in S’pore

Metro will shut down stores in Paragon & Causeway Point after leases expire

Iconic Singaporean brand Metro will shut down its stores in Orchard and Woodlands after their respective leases expire, it said in a news release on Monday (20 July).

The outlets, located in Paragon and Causeway Point malls, are Metro’s last remaining large-format department stores in Singapore.

Metro will transit to ‘more flexible’ retail approach

The announcement, made in a filing with the Singapore Exchange, came after a “strategic review” of Metro Holdings’ retail business.

It cited the “operating challenges faced by Singapore’s retail sector” for its decision to “reposition” of its retail business to better meet evolving consumer preferences.

Thus, the company will move away from operating traditional large-format department stores, it said.

Instead, it will adopt a “more flexible retail approach” involving “specialised retail concepts” and emphasising customer engagement.

Paragon units occupied by Metro to be reconfigured: Owner

To that end, Metro is engaged in discussions with its existing landlords, it said.

The landlord of Causeway Point is Frasers Centrepoint Trust, while Paragon is owned by CapitaLand Integrated Commercial Trust (CICT), which acquired the mall on 1 July.

In a media release, CICT said it will optimise and “selectively reconfigure” certain areas within the mall, including areas currently occupied by Metro.

It also noted that Metro has expressed interest in remaining at Paragon under “new retail concept stores”.

Metro will roll out ‘new retail multi-concept stores’

On its part, Metro has indicated that it will remain in the Singapore market by rolling out “new retail multi-concept stores”.

It is already engaged in discussions with the existing landlords as well as other landlords, and is evaluating potential locations and opportunities for the new stores, it said.

The management will consider location suitability, rental terms, financial viability, implementation timelines and other commercial and operational matters, among other aspects.

Metro must evolve with consumer expectations: Management

Metro Group Chief Executive Officer and Executive Director Yip Hoong Mun said today’s consumer expectations are “fundamentally different”, creating a “challenging operating environment”.

Thus, the company must refresh its retail strategy to meet their evolving expectations, while having greater flexibility to introduce new concepts, brands and partnerships, he added.

Metro Chairman Tan Soo Khoon said it’s important that Metro evolves alongside the continuously transforming retail landscape, adding:

The Board believes this strategic repositioning will better position Metro for long-term sustainable growth by creating a more agile retail platform that can adapt to changing consumer expectations and capture new opportunities.

Metro will continue to pursue opportunities through its brand management joint venture company, Grand Brands Asia, which focuses on international retail brands and immersive
concept stores.

As the company is currently assessing the financial implications of the transition, it is not yet able to quantify the full financial impact on earnings.

Metro opened in S’pore in 1957

The first Metro store in Singapore opened in 1957, at a two-storey shophouse at 72 High Street.

Its founder, Indonesian businessman Ong Tjoe Kim, named the store after Hollywood movie studio Metro-Goldwyn-Mayer.

In subsequent years, he opened more Metro department stores in town, at locations including Liat Towers and the then Supreme House along Penang Road.

Metro Holdings became publicly listed in 1973, with the company operating five department stores along Orchard Road at its peak in the 1970s.

It was also responsible for bringing foreign brands such as Toys ‘R’ Us, Kmart, Cartier, Piaget, Tag-Heuer and Burberry into the Singapore market.

Metro Paragon opened in 1987, with then Second Deputy Prime Minister Ong Teng Cheong gracing its opening.

In the decades after, Metro ventured into the heartlands, opening at Century Square in Tampines (1996), Causeway Point in Woodlands (1998) and Compass Point (now Compass One) in Sengkang (2002).

These outlets have since closed down. With the closure of Metro Centrepoint in 2019, it was left with just two stores in Paragon and Causeway Point.

Also read: Isetan NEX closes down on 26 April after 15 years, staff wave goodbye as shutters lower

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Featured image adapted from Google Maps and National Archives Singapore.