Metro department store is currently in discussions with CapitaLand Integrated Commercial Trust (CICT) to remain at Paragon shopping centre through a transition into new retail concept stores. This move follows a broader strategic shift by the retailer to abandon traditional large-format department store models in favor of a more flexible retail model centred on “specialised retail concepts” as market preferences evolve, according to statements from both CICT and Metro.
Metro’s Pivot to Specialized Retail Concepts
Metro is moving away from the traditional, sprawling department store footprint. According to a bourse filing, the company intends to phase out its large-format stores at Paragon and Causeway Point as their current leases expire. Chairman Tan Soo Khoon stated that this repositioning is designed to create a more agile retail platform capable of adapting to changing consumer expectations.
The retailer is now prioritizing “specialised retail concepts” and multi-concept stores. This strategy involves partnering with international brands to bring immersive retail concepts to the Singapore market. Metro has already begun this transition through its brand management joint venture, Grand Brands Asia, and the launch of experiential concept zones like “SleepLab” and “MiniMuse,” which allow customers to interact with beauty and home products before purchasing.
Did you know?
Despite efforts to refresh its retail offerings, Metro’s retail arm reported a loss after tax of S$11.4 million for the financial year ended March 31, 2026, compared to a S$6.9 million loss the previous year, highlighting the significant headwinds facing the brick-and-mortar retail sector in Singapore.
Paragon’s Future Under CICT Management
Since completing its S$3.9 billion acquisition of Paragon on July 1, CICT has been reviewing enhancement initiatives for the Orchard Road property. While previous owners under Cuscaden Peak had proposed a major redevelopment with an estimated cost of up to S$600 million, CICT is taking a different approach. The trust confirmed it is exploring asset enhancement opportunities that may differ from those preliminary estimates.
CICT’s manager noted that the focus remains on strengthening Paragon’s tenant mix, which spans luxury fashion, beauty, home and living, sports, wellness and kids. Discussions regarding Metro’s future at the mall are ongoing, with feasibility studies currently underway to determine how new retail concept stores would integrate into the mall’s long-term vision. Additionally, CICT is engaging with authorities to improve sheltered connectivity between Paragon and neighboring properties.
Comparison: Traditional Retail vs. Agile Models
The shift Metro is undertaking reflects a wider trend among legacy retailers facing the pressures of a digital-first economy.
| Feature | Traditional Department Store | New Multi-Concept Model |
|---|---|---|
| Footprint | Large, multi-floor | Compact, flexible |
| Focus | Broad inventory | Curated experiences |
| Operational Cost | High overhead | Scalable/Agile |
Frequently Asked Questions
- Is Metro closing down at Paragon?
- Not necessarily. Metro has expressed interest in remaining at the mall through new retail concept stores, and discussions with the landlord, CICT, are currently ongoing.
- Why is Metro changing its business model?
- Metro is pivoting to adapt to a challenging retail environment and changing consumer expectations, moving toward a more flexible model that focuses on specialized brands and experiential zones.
- What happens to the Causeway Point store?
- Metro has stated it will not continue operating its existing large-format store at Causeway Point when the current lease expires.
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