Metro Closes Paragon and Causeway Point Stores as Singapore Department Store Era Fades

NUS Business School real estate professor Cheng Tianfu told Lianhe Zaobao that physical department stores have lost their appeal to customers who simply want to browse a wide range of products, as online shopping has made price comparison effortless. Robins, OG, BHG, and Isetan are among the department stores that have scaled back in recent years.

Singapore Management University marketing professor Seshan Ramaswami agreed that as e-commerce and the convenience economy have become more prevalent, the original appeal of department stores – product variety and convenient shopping – has all but vanished. “The department store concept began gaining popularity in Singapore in the 1970s, peaked through the 1990s, and most have been struggling to maintain their relevance since the 2010s,” he noted.

Some department stores like Takashimaya and CK Tang have managed to withstand the seismic shift in consumer behaviour. According to Takashimaya’s latest financial report, its FY2025 operating profit was 77 billion yen (approximately S$608.7 million), with FY2026 projected to rise to 84 billion yen. CK Tang also remained profitable in FY2024, reporting a net profit of S$12.5 million.

Singapore Polytechnic School of Business lecturer Cheng Junlu attributed their resilience to superior geographical positioning, clear brand identity, and carefully curated product, service and experience combinations. “They are not just selling products but are part of a broader shopping destination,” he said.

Savills research and consulting executive director Zhang Minrui noted that he regularly visits the basement food court at Takashimaya’s Orchard Road flagship store, drawn by the diverse cuisines from different cultural backgrounds, the department store’s established ambience and geographical location, and the reasonable pricing.

For Metro’s closure at Paragon and Causeway Point, Frasers Centrepoint Trust (FCT) told Zaobao that Metro’s announcement aligns with their asset enhancement plans. The trust is also exploring how to better segment existing tenant spaces to provide shoppers with a richer range of retail choices.

Zhang warned that as large department stores exit, mall owners need to develop appropriate counter-strategies to fill the “huge vacuum” left behind. He suggested property owners could convert vacant ground or basement floors into food courts or dining precincts, while upper floors could be partially converted to office space. “These office spaces can help drive foot traffic to remaining retail and F&B outlets in the mall, as more office workers can bring higher consumer spending,” he said.