Metro soars 11% to 2-year high on news of strategy revamp
[SINGAPORE] Shares of department store retailer Metro advanced on Tuesday (Sep 16), following news of its retail strategy revamp.
The counter closed on Monday at S$0.50. By 3.48 pm on Tuesday, it had risen 11 per cent or S$0.055 to S$0.555, with more than 1.1 million shares changing hands.
ShareInvestor data indicated this is the highest price the stock has hit since September 2023, when it traded as high as S$0.565.
By 4.25 pm, it had retreated somewhat to S$0.54, still up by 8 per cent or S$0.04, with around 1.2 million shares transacted.
On Sunday, The Business Times reported on Metro’s plans to revamp its retail strategy to combat the industry headwinds that have hit its retail division, which posted a loss after tax of S$6.9 million for FY2025, versus a S$1.8 million profit in the previous year. Its two remaining Singapore outlets at Paragon and Causeway Point recorded lower contributions as sales fell 8.5 per cent to S$96.5 million.
On a group level, the company sank into the red with a S$224.8 million net loss for FY2025, from a S$14.6 million net profit previously.
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The weak performance sparked shareholder questions at its recent annual general meeting on whether the company would exit the retail industry, but Metro intends to press on.
In a bid to improve business, it is turning to a slew of new strategies, including global tie-ups as well as immersive and modular concepts.
For one, it has partnered South Korean retail giant Shinsegae to bring in exclusive products – including brands that will be available in Singapore only through Metro – as part of a bid to differentiate itself from competitors.
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Through the tie-up, Metro is also looking at introducing its brands to Shinsegae.
Experiential offerings are also in the pipeline, such as a “sleep lab” that will allow customers to try mattresses.
Another new concept is MiniMuse, a luxury beauty and wellness selection targeting young customers that offers sample-sized products for them to try before making full-sized purchases.
Yet another is Kitchen Stadium, which will allow shoppers to watch live demonstrations by chefs.
