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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.<\/p>\n
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.<\/p>\n
The Paragon and Causeway Point outlets are Metro’s last remaining large-format department stores in Singapore.\u00a0<\/p>\n
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.<\/p>\n
“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.<\/p>\n
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.<\/p>\n
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.\u00a0<\/p>\n
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.<\/p>\n
The timeline and scope of the transition remain under review and subject to detailed execution planning, Metro said.\u00a0<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
Metro said it will provide further updates when there are material developments relating to the implementation of its new retail strategy.<\/p>\n