Metro to close Paragon, Causeway Point stores as it shifts to curated retail formats

Metro's Department Storage Exit and the Shift to Curated Retail

Metro Holdings is closing its landmark department stores at Paragon on Orchard Road and Causeway Point in Woodlands when their leases run out, the mainboard-listed company confirmed in a Singapore Exchange filing on 20 July. The move is part of a strategic review that will see the nearly 70-year-old retailer shift away from the traditional large-format model. Metro says it is now evaluating smaller-format stores, multi-speciality concepts, curated retail experiences and pop-up initiatives.

The retailer has not disclosed a closure timeline, and staff at the Causeway Point outlet expressed uncertainty, with some suggesting the exit could come within months to a year. Metro also did not answer questions on staff redeployment, retrenchments or the fate of its loyalty-card members. On a quiet weekday lunchtime, footfall at both stores was light, yet many shoppers told The Straits Times they were saddened by the news.

“Online shopping is not for us. We prefer to be there in person,” said Boon Kiat, a customer in his 60s who visits the Paragon store two or three times a month with his wife. Others described Metro as a calming space to browse for gifts or household items — a place where they could touch, feel and compare products before buying. For some, the department store’s strength was its breadth: “Metro sells so many different sorts of things,” said Mabel, a freelance designer in her 20s.

The closures mark another chapter in the long-running decline of Singapore’s department stores. John Little disappeared, Isetan downsized, and Robinsons — which tried a fashion-forward reboot — shut all physical stores after 162 years. Price is one obvious pressure: an air fryer listed at S$269 in Metro was available on Shopee for S$228, while a standing fan priced at S$249 was less than half that on the brand’s official online store. Ethan Hsu, founder of retail consultancy Catbird, said the “large-format catch-all model is losing ground with both price-sensitive and quality-seeking consumers.”

Why Singapore's Department Stores Are Shrinking — and Who Still Wants to Browse in Person

Metro's Curated Bet and the 'Undifferentiated' Trap

Metro’s pivot mirrors a structural challenge facing department stores globally. As Ethan Hsu of Catbird put it, “A department store that is not cheap enough to win on price, not exclusive enough to win on prestige, and not specialised enough to win on curation is competing against everyone and winning against no one.” The data backs him: the price gap on identical appliances is a stark illustration. Shoppers who are willing to browse in person can still check prices on their phone while standing in the aisle.

The Price Gap That Hurts Physical Stores

The examples the Straits Times checked show a Tefal Easy Air Fryer Steam and Grill at S$269 in Metro versus S$228 on Shopee, and an Iris Ohyama standing fan at S$249 compared with S$120 on the brand’s official Shopee store. Even allowing for delivery costs, those gaps are hard to defend. Metro, like other department stores, operates on a concessionaire model that layers on rental and staffing costs; this cost structure becomes a liability when a pure-play online competitor offers the identical item at a lower price.

What Survives in Singapore's Retail After 70 Years

Physical retail is not dying, Hsu argued; “undifferentiated physical retail” is. The formats gaining ground are those with a clear identity and value proposition — speciality stores, mono-brand boutiques and experience-led concepts. That is precisely the lane Metro wants to occupy. Its move may also signal that the few remaining large department stores will need to shrink their footprints, sharpen their curation or add services that online cannot replicate. For now, Metro retains a core of loyal customers who value the tactile, therapeutic experience of browsing. The challenge is whether that loyalty can be monetised in smaller, more focused spaces.

What Metro's Pivot Means for Shoppers and the Retail Sector

For retailers: Metro’s decision reinforces that a sprawling, catch-all format is no longer viable without a sharp price advantage or a clear brand identity. The lesson is to double down on curation, personal service or exclusive product lines that make a store visit worth the trip. Retailers should audit their own price gaps against online rivals — customers are doing exactly that on their phones.

For shoppers who value the in-store experience: While large department stores are shrinking, the shift towards curated retail may still offer the chance to browse and touch products in a more intimate setting. Shoppers who enjoyed Metro’s atmosphere may find similar comfort in the smaller-format concepts the company plans to test.

For Metro cardholders and employees: Metro has not yet provided details on the loyalty programme or job security. Card members should watch for official communications from the company, as well as any transition arrangements. Employees at the affected outlets are likely awaiting clarity on redeployment or retrenchment; the company’s silence on this point means significant uncertainty remains.