<div id="readability-page-1">Retired regional human resources director Helen Kuan typically spends this time of year picking up Christmas presents from her usual department store haunts around Singapore. But her options are becoming more limited as more of these one-stop stores have been shuttering in recent years.\nOn Monday, shopping centre NEX, located in the northeast of Singapore, announced that Japanese brand Isetan would close in April next year, a month after the chain shut its Tampines outlet. With these closures, Isetan’s Scotts Road store and its leased-out space at Wisma Atria are what the department store has left in the city state, where it once had six outlets.\nRetail experts told This Week in Asia that department stores worldwide are under threat from changing consumer patterns and e-commerce. For Kuan, 63, the main reason to keep returning to the stores is the shopping experience.\n“Maybe as part of the older generation, I like the social interaction. I like to see and touch, and get the salesperson to tell me about the products and walk out with what I want straight away, while knowing exactly what I’m going to get. [Shopping] online feels colder, and I’ve been scammed by lousy products,” Kuan told This Week in Asia.\nA spokesman for Isetan, which first set up shop in Singapore in the 1970s, said in response to media queries that it was closing because of the “expiry of its lease agreement and as part of a strategic review of business operations”. The brand was looking to realign resources and strengthen its focus on its flagship Isetan Scotts store in Orchard.\n“Isetan Scotts continues to be our core retail focus in Singapore, and we have invested in upgrades, refreshed concepts and new tenants to strengthen the overall shopping experience,” the spokesman said.\nState-owned broadcaster CNA reported on Thursday that among five major shopping centre operators in the country – Takashimaya Singapore, C K Tang, which operates Tangs, Isetan Singapore, BHG Singapore and Metro Holdings – only Takashimaya and Tangs, both of which own or control their retail space, were profitable.\nTakashimaya Singapore reported a net profit of S$43.18 million (US$33 million) for the year ended December 2024, slightly down from 2023 but far outperforming its competitors. C K Tang remained in the black with a S$1.25 million net profit in the 2024 financial year, a decline from S$4.61 million the previous year, according to CNA.\n\nDepartment stores once thrived in Singapore from the 1960s to the 1990s, with local and international brands such as Robinsons, John Little, Daimaru, Yaohan, SOGO and Oriental Emporium being household names in the city state.\nBut with more shopping malls having similar offerings under one roof and the proliferation of cheap e-commerce platforms, retail business models based on department stores are increasingly under threat, according to experts.\nYaohan closed in 1997 after its parent company in Japan declared bankruptcy, while Daimaru shut down in 2003. In 2005, Seiyu sold its Singapore business to CapitaLand, which in turn sold it to Beijing Hualian Group.\nJohn Little closed its last outlet in 2016, marking the end of Singapore’s oldest department store, which opened in 1842. Robinsons closed its last physical stores in Singapore in The Heeren and Raffles City in December 2020, after 162 years of operations.\nLynda Wee, adjunct associate professor at Nanyang Business School in Nanyang Technological University, told This Week in Asia it was likely that conventional department stores with leased department concepts would follow suit, especially those that continue to rely on old formats, large footfall and broad but undifferentiated assortments.\n“Retail is evolving towards specialisation, storytelling and differentiation, and the future will be shaped by brands that elevate their product quality, brand experience and emotional relevance. Department stores that fail to adapt to this shift will naturally fade, while those that transform may still find a meaningful though more focused role in the market, starting with their current customer base,” Wee said.\nExperts note that while the department store format has been losing steam across the developed world, it is exacerbated in Singapore due to high rental costs, labour costs and a small domestic market.\n\nSeshan Ramaswami, associate professor of marketing education at the Singapore Management University, pointed out that there was also difficulty in hiring retail staff for positions requiring them to be on their feet all day and offering tailored service to local and foreign customers.\nAsked if the closure of department stores in recent years could affect Singapore’s reputation as a shopping destination, Ramaswanmi said that its status as a shopping destination for tourists from its biggest markets, such as Indonesia, China and India, had declined in the last decade for multiple reasons.\nThe biggest cause was the rapid development of modern retail concepts in these countries, providing consumers with a much wider assortment of products and brands domestically at far better prices, he added.\nSulian Tan-Wijaya, executive director of Retail &amp; Lifestyle Savills, noted that outside Singapore, brands such as Selfridges and Harrods in London and Mitsukoshi in Tokyo had evolved successfully with the times.\nAll three have a strong line-up of luxury brands, proper curation of mid-range fashion brands, vibrant beauty hall and popular food &amp; beverage concepts featuring worldwide cuisine, according to Tan-Wijaya.\n“Selfridges is especially popular with the younger, trendy shoppers as they are strong in streetwear and have a well-curated playlist of music that is anything but mainstream. Mitsukoshi also has a roof garden for tired shoppers to rest in between their buying sprees,” she said.\n\nAdapt to survive\nIn the case of Singapore, Tan-Wijaya argued that younger shoppers preferred individualistic specialty stores over mainstream brands, and bringing these concepts into department stores might help them stay relevant.\n“Outdated department stores risk alienating the very important Gen Y and Z demographics and losing relevance very quickly. To appeal to younger shoppers, department stores should introduce more relevant and edgy fashion brands of various price points, newer and cult beauty brands, which you can find in places like Sephora instead of the usual mainstream department store brands,” she said.\nRamaswami said department stores in Singapore should target young shoppers through integrated omnichannel experiences, allowing shoppers to buy online and pick up at a store, or order from a store and have their purchases delivered to them.\nThey could also tailor shopping experiences to trends, like the Pokemon phenomenon or sporting events, or focus on uniquely Singaporean brands and products to attract tourists.\n“Otherwise, once the current loyal middle-aged Singaporean customers retire, that may just signal the beginning of the end for this format in Singapore,” he said.\nKuan, who belongs to the segment of retiree customers, has noticed that the department stores she frequents are attracting far fewer shoppers than in their heyday, and they tend to be older.\n“When you look at malls and the department stores in them, it seems like closure is not a matter of if but when.”\n</div>

<p>Department stores in Singapore are struggling due to changing consumer patterns and the rise of e-commerce. Isetan is closing outlets, focusing on its flagship store. Experts suggest department stores must adapt by specializing and enhancing brand experience to survive. High rental and labor costs, along with a small market, exacerbate challenges. Singapore's reputation as a shopping destination is declining due to modern retail developments in neighboring countries.</p>

As more department stores in Singapore struggle, can they adapt and survive?