Metro to close Paragon, Causeway Point stores when leases end in retail overhaul
Metro says it intends to progressively move away from the traditional large-format department store format following a "strategic review" of its retail operations.
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SINGAPORE: Metro Holdings will stop operating its department stores at Paragon and Causeway Point when the current leases expire, as it intends to progressively move away from the traditional large-format department store format.
In a bourse filing on Monday (Jul 20) night, Metro said the shift follows a "strategic review" of its retail operations as it seeks to better align with evolving consumer preferences, shopping habits and market trends.
The Paragon and Causeway Point outlets are Metro's last remaining large-format department stores in Singapore.
The company plans to transition in phases from its long-standing department store model to a more flexible retail approach aimed at improving customer engagement, boosting operational efficiency and pursuing new growth opportunities.
"Accordingly, the group will not operate its existing large-format department stores at Metro Paragon and Metro Causeway Point upon the conclusion of the existing lease arrangements for those locations," the company said.
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As part of its shift in retail strategy, the group is exploring a range of other concepts, including smaller-format stores, multi-specialty outlets, curated shopping experiences and pop-up store initiatives.
Metro said that it is in discussions with its current landlords as well as other landlords regarding the rollout of new multi-concept retail stores.
It added that its management has begun assessing potential sites, taking into account factors such as location suitability, rental terms, financial viability, implementation timelines and operational considerations.
The timeline and scope of the transition remain under review and subject to detailed execution planning, Metro said.
The company is also assessing the financial implications of the move and said it is not yet able to quantify the full impact on earnings.
However, the board said it does not expect the transition to have a material effect on the group's consolidated net tangible assets or earnings per share for the financial year ending Mar 31, 2027.
It will also continue pursuing opportunities through Grand Brands Asia, its brand management joint venture that focuses on international retail brands and immersive concept stores.
Metro said it will provide further updates when there are material developments relating to the implementation of its new retail strategy.
The homegrown operator closed its six-storey flagship store at The Centrepoint in 2019, while it also previously ran outlets in City Square and Compass Point in Sengkang.
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