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Singapore, officially known as the Republic of Singapore, is a member of the world’s exclusive club of city-states, along with Vatican City and Monaco. Singapore was even identified in 2015 by the Financial Times as “the world’s only fully functioning city-state”, with its currency, a large airport acting as a worldwide hub, one of the busiest maritime ports, and fully fledged armed forces (a feature that the other two do not have). Singapore’s numbers are astonishing: it was the 4th most competitive economy in the world in 2023, one of the world’s very few countries to be rated AAA by S&P, Moody’s and Fitch altogether (and the only one in Asia), the second densest city in the world after Monaco, the second country in the world in terms of being a business-friendly place. 100% of its citizens are equipped with smartphones (a feature that even South Korea, an ultra-connected market, does not reach).

Singapore’s reputation in terms of productivity is well-established. Still, combined with tourism (Singapore is the 5th most visited city in the world and the second in Asia, thanks to its “City in Nature” positioning promoting sustainable tourism), it becomes a natural destination for anyone versed in retail. The state in its current form is 107 years younger than the first department store to have opened there, Robinsons in 1858, when Singapore’s population was 80,000, of which 50% were Chinese.

Today, retail represents 3% of the national workforce and 1.4% of Singapore’s GDP, serving nearly 6m inhabitants. Most of its iconic department stores are located on Orchard Road, which gives visitors the feeling of seeing double, given the ubiquity of luxury and fashion labels there. This situation raises some serious questions regarding the still-operating department stores (Robinson’s closed for good in 2021): how are they differentiating? What is up-and-coming in such a competitive retail landscape?

Are department stores in Singapore a disconcerting picture of the past?

Strolling down the 2.2 km-long Orchard Road is an authentic luxury experience, in a literal way: the whole location and its street furniture were revamped in 2010 for a total of $40m, to be on par with the retail tenants: more than 50 luxury flagship stores, 5,000 fashion and retail lifestyle stores, 800 restaurants, bars and cafés, and at least 4 department stores, all over more than 8m sqft of retail space. It is a culture of plenty, and one might see the same logos repeatedly, from Louis Vuitton to Gucci, Chanel or Dior. Every retailer preempts as much visual space as possible to be louder and more attractive than its competitors, including luxury brands.

It is stunning to see so many different department stores in such a small area, in a densest way than in other international shopping hubs such as New York, Paris or London: customers have the choice between 4 different department stores, all located less than 3 minutes from each other. Differentiation is, therefore, key to making sure they stand out, and, in earnest, the mission is not accomplished: even though Tangs, the now-oldest Orchard Road department store, has implemented some very nice ideas to create loyalty and a sense of belonging, it is difficult to feel excited by the department store scene.

Among foreign operators, Indonesia-based Metro Department Stores is the oldest in Singapore. It opened in 1957 to sell overseas labels to wealthy housewives. The first store on Orchard Road opened in 1965 and relocated when the Paragon Mall (in front of the first location) opened in 1987. After having up to six stores in the 2000s, Metro now only operates the Orchard Road flagship and the suburban location of Causeway Point. It focuses on private labels to complete an international offering.

The Paragon Mall was refurbished in 2008 for $82m, including opening new retail spaces. This allowed it to go upmarket and attract luxury brands such as Tod’s, Prada, Miu Miu, and Gucci, as well as Marks & Spencer and Toys”R”Us. It offers upscale dining options such as the Imperial Treasure Peking Duck, a supermarket, and the expected array of services in such a location: concierge, free Wi-Fi, members’ lounge, and EV and phone charging./nbsp]

In such a context, anyone would expect an upscale experience when visiting the anchor department store, which is far from the case. A major issue comes from Metro's location within the mall, at the back and up one floor, forcing customers to use escalators to visit a store that lacks both efficient in-mall frontage and outside views and windows. Consequently, the department store has low visibility and cannot entice international visitors without prior knowledge of the mall to come in and visit.

The store is developed on three floors in a very classical manner: cosmetics, fragrances, and women’s shoes on the first floor, women’s and men’s apparel and accessories, and services on the second, while home, kids, and lifestyle can be found on the last floor.

When arriving in the store, the experience in the cosmetics and fragrances area is luxurious and efficient, with branded counters without walls, allowing a sense of space. The shoe area is similarly wide open, providing perspectives and a sense of plenty. The apparel floor feels less luxurious, as fewer luxury labels and many more mid-market names are displayed in a generic setting, therefore not providing a memorable experience. The feeling gets more present on the last floor, where the purpose is clearly to sell products rather than propose a special experience. Some decisions are surprising:

• The store is offering suitcases on every floor, even though they are officially displayed on the last one according to the floor maps,
• Similarly, the transitions between categories can sometimes be unsettling, such as the second floor, where lingerie is mixed with luggage and men’s apparel on sale.
• Lego is advertised on the floor plans and suggests a significant shop in the shop with a branded display, while in fact, the products are on shelves near other brands without a specific effort to promote the brand.

Traffic was satisfying at the time of visit, which suggested that the department store succeeds in attracting a crowd of loyal locals. However, it is difficult to understand Metro’s selling point to international customers apart from discounts and rebates.

Japanese department store Isetan entered Singapore in 1983 with a store on Parkway Parade (the store was closed in 2022), in Wisma Atria on Orchard Road in 1986 (Isetan closed the store in 2015 and converted it into rental units keeping the Isetan umbrella name), in Orchard Road’s Shaw House in 1993 (the current flagship), as well as in 2 other suburban locations in 1995 and 2010. Today Isetan operates 3 locations in Singapore.

The Shaw House was built in 1993 on the old Lido Cinema and sits at the crossroads of Orchard Road and Scotts Road, leading some locals to dub it “Isetan Scotts”. The store is expanded on 5 floors: a basement with a supermarket and gourmet restaurants, the first floor dedicated to cosmetics, beauty and jewellery, the second floor dedicated to women’s apparel and accessories, the third floor dedicated to “lifestyle” including men’s fashion and gadgets, as well as golf apparel, and the last floor devoted to home and kids. Like in the Shinjuku location in Tokyo, each floor offers food and beverages, which encourages spending time in the store.

Overall, the feeling is extremely luxurious, and the highlights are the spectacular grocery store in the basement (which could easily compare to the Isetan Tokyo experience or Le Bon Marché’s Grande Epicerie in Paris) and the atrium on the ground floor (first floor), which structures the whole building.

The first floor, dedicated to cosmetics and fragrances, is beautiful but empty at the time of the visit. However, the only moment when a salesperson initiated contact was on this floor, while it did not happen at any point in any other store visited on the same day. Store execution is spectacular, and a “Café de Muse” coffee shop completes the product offering.

This overlap of food and retail is also felt at the second floor and is quite effective. However, women’s fashion offerings are toned down by the fact that brands are not visible, creating a strange experience in which the food points stand up. The same feeling takes place at the third floor where the Sushiro restaurant feels almost part of the Bang & Olufsen stand and is almost too visible, shadowing interesting spaces such as the one dedicated to golf. Finally, the fourth floor (technically the fifth as there is an intermediary floor operated by another retailer and not accessible from within the store) displays kids and home. It gives access to the McDonald’s restaurant and the cinema.

While the overall experience was clearly more luxurious than in Metro, and the effort to provide a series of food options during the visit was notable, the feeling, here again, was that this store was selling products rather than experience, questioning the very reason why one would come specifically to Isetan and not another department store.

Its Nippon competitor Takashimaya entered Singapore in 1988 when they signed a joint venture deal with real estate developer Ngee Ann Kongsi, which opened the two-towers-strong Ngee Ann City building in 1993 on what used to be a cemetery. Takashimaya occupies 37,000 sqm in Tower B and used to compete with Tangs in Tower A until it closed for poor results and was replaced by a series of luxury flagship concessions.

The store is structured according to Japanese retailers’ playbook: a basement with a Japanese supermarket and a food hall, a ground floor dedicated to cosmetics and accessories, international designers on the first floor, ladies’ and men’s apparel and accessories on the second floor, then kids on the third, and home appliances on the top floor./nbsp]

The second basement, which includes Japanese food and restaurants, was bustling when visited at 3 p.m. on a weekday, suggesting that the place is recognised as a meeting point and a landmark for locals. A selection of international and Japanese food labels completed the offering and gave a sense of elevated shopping despite the noise, excitement and intense crowd. The first basement, dedicated to homeware, home appliances and kitchenware, offered a stark contrast, as the traffic was lower and the experience poorer: just like at Metro, products are stacked rather than desirably displayed.

The first floor (ground floor) is Japanese department store retail at its best, with a series of international luxury cosmetic brands alternating closed-wall units and open ones, all surrounded at the periphery of the floor by mid-market accessories brands shop-in-shops such as Kate Spade, Coach, Bally or Marc Jacobs. Luxury names can be found on the second floor, where the likes of Bottega Veneta and Manolo Blahnik neighbour Issey Miyake, Ba&sh, Ganni and Kenzo, and regional names such as Bora Aksy and Maryling. A section was under refurbishment at the time of the visit, with Mulberry and Burberry due to open and the Hermès space temporarily relocated to the third floor.  The first floor also houses a Club 21 multi-label boutique, a legendary name in Singapore regarding fashion, with 7 locations in the city, including a second one on Orchard Road.

The third floor is dedicated to women’s and men’s fashion, accessories, a selection of tech, and luggage. The space is much more fragmented regarding retail units and feels more crowded. While the women’s section could claim to be the most agreeable experience, thanks to a mix of international brand stores (Maje, Sandro, the temporary Hermès unit), the floor felt overall rather poor in terms of experiences, with a strange floor plan, locating customer services near lingerie and men’s gadgets, and a very significant and unappealing luggage area near the escalators in a very high-traffic zone. The service area (which includes the VAT refund) works with a ticket system, and customers wait on tired seats, making the experience unappealing.

The fourth floor is dedicated to sports, kids, and restaurants. Toys are appealing (all units are branded), childrenswear does not stand out (most brands are in generic display), and the sports section is spectacular, thanks to a space operated under ‘Sports Central’. Again, some store zoning choices are questionable, such as the fitting rooms near the lifts. The shopping options are completed with the top floor offering home appliances sold by a business partner, “Best”, under different branding.

The experience at Takashimaya ranges from exciting and bustling at the food level to classical and “déjà-vu” on the ground floor and disappointing on the top floors.

The notable exception of Tangs…

Tangs, an iconic name often compared by locals to Bloomingdale’s and Selfridges, was founded by C.K. Tang, a Chinese national, in 1932 on a first location in Singapore. He was one of the first to identify the potential of Orchard Road, from an old dirt road to a major traffic magnet. He relocated there in 1950, opening his store in front of what used to be a cemetery and initiating a spectacular real estate boom in that part of the city. Today, the group also operates a 7,900 sqm unit in another mall, VivoCity, that opened in 2006 and was fully renovated in 2022.

The Orchard Road location, which spans five floors and more than 15,000 sqm, was renovated in 2012 for $35m and is currently undergoing a new set of renovations announced last July, starting with the basement. The store is modelled after the Chinese Imperial Palace and is flanked by a tower, the Tang Plaza, which was purchased in 1982 and houses a Marriott hotel.

The basement is dedicated to home, wellness and gifts, while the first floor (ground floor) accommodates beauty, the second floor women’s and kids, the third floor homeware, gadgets, tech and men’s, and the fourth floor beauty services. Food options are available across the building except for the third floor.

The basement, while not dedicated to gourmet food like in its Japanese competitors, feels very luxurious regarding how products are displayed, with an effort given to VM and product visibility. Consequently, brands seem more desirable because they have more space for expression, such as Miele or the large Dyson space in front of the escalators. The atmosphere is quiet, without music, which allows operators to diffuse promotional advertising without being too oppressive. What also stands out is the TANGS-branded space dedicated to glassware, tableware and appliances, emphasising the notion of curation and selection.

The first floor (ground floor) feels extremely luxurious and quiet during the visit, despite the passing crowd in front of the store (and even when compared to the traffic in the basement). Brands are organised by semi-closed units, creating perspectives but avoiding giving the visitor a sense of the (relatively) small surface of the store. A bakery producing croissants on site is available, and interestingly, it is completely glass-walled to allow visitors to see but avoid spreading smells in the store.

The second floor is dedicated to women and kids. Again, the presentation is extremely luxurious. Similarly to the basement, a TANGS-branded space proposes a curated offer with exclusive brands such as Suncoo or By Malene Birger. It is strategically located near the food point, allowing here again to create synergies. Messaging is all about caring for the community: wall advertising mentions that “TANGS loves local” and promotes Singaporean-based fashion.

The third floor is well executed, especially regarding homeware and beds. Some product zonings are surprising (men’s underwear is located between luggage and beds). Still, overall, the feeling of luxury remains present, even if the visitor is now on the higher floors. A large Sunglass Hut stand and an overrepresentation of luggage also stand out on this floor. The shoe concept is very coherent, and when it comes to sports, it makes it obvious that Tangs has managed to maintain its partnership with Adidas but lost Nike. A common point to the second and third floors is that Tangs seemingly focuses on mid-market brands, which are often private labels or new and unknown names when it comes to fashion.

The fourth floor is dedicated to beauty salons, including a Chanel Privé, and a “museum,” which is a wall displaying historical pictures of C.K. Tangs, his belongings, the company's history, and repeating the company’s commitment to serving the local community.

There is a clearer path towards more experience at Tangs. It does not go only through the offering of many food and beverage points but also through the expression of the retailer’s name in a very specific (and desirable) way from the point of view of the community, emphasising its local commitments and rooting, as well as real attention given to details and execution at all floors of the store. It is therefore telling that a new round of upgrades is starting to increase the level of experience during the visit even more.

…but wait, there is more!

In Singapore, department stores might not be the ones writing the future of the retail experience, as they are entangled in a competition to retail the best brands (which are otherwise tempted to go solo), in a declining market (retail sales decreased by 2.3% in July 2024 and department stores slid by -11%), where customers are strangled with inflation and ask for more promotions, while leases and rents are increasing. As a consequence, innovation is coming from unexpected places.

In the Isetan Wisma Atria mall, on Orchard Road, a bank, OCBC, has opened a remarkable space worth visiting. The OCBC space is a whole retail unit, accessible both from the atrium (connected with the food court) and the escalators, and is special in the sense that it is much more than a bank.

While customers have access to a series of ATMs at the entrance and dedicated desks for all customer tiers (from personal to private and “premier” banking), as well as a customer service desk, OCBC offers them to spend more time on-site by offering retail activities:

• A visually appealing and functional spectacular library allows people to spend time reading books. They can also purchase them, which echoes OCBC’s cultural positioning since the bank also offers to view a part of their private art collection in a gallery next to the library.
• A café is based in the library space, where customers can enjoy vegan food,
• A retail space offering sustainable and locally produced items allows to shop from a variety of categories, from tableware to gadgets or clothing,
• Finally, a sushi restaurant is also available.

Interestingly, OCBC is very clear about the notion of customer data: every credit card holder has priority over other customers for all categories and a 10% discount, while non-holders, including foreign ones, are invited to choose between either opening a bank account on the spot or simply apply to the loyalty programme. The space overall stands out in terms of experience and creates a true attraction: during the visit, many bank customers were coming from all parts of the mall to settle a bank question and stayed there, having a snack or reading a book, in a relatively quiet, relaxing and welcoming environment. Isetan owns the space: leasing it to OCBC is a smart way for a retailer with a non-productive space to rent it to a new operator, bringing a fresh perspective on the retail experience.

At the Singapore Changi airport, another approach was taken at the Jewel Airport mall to generate interest and curiosity. This mall is not just another airport mall: it was clear since its opening in 2019 that, to be profitable, the 137,000 sqm-large, $1.2 bn-worth mall should address local customers first, well before tourists: the plan involved having 60% of local customers and 40% of international ones. In 2023, footfall increased 26% over 2022, and 70% of it was from local customers. The Jewel is extremely special as a mall:

• The mall focuses on new-to-market brands, such as the first Shake Shack, Burger & Lobster, Pokemon, or Make Hero, a Japanese make-up brand, stores and restaurants.
• Also, well-known brands are invited to display a distinctive experience: Apple has developed a store centred around photography, given the picturesque, inverted fountain that has become The Jewel’s most famous picture. Bacha Coffee, a new coffee chain, has developed a truly experiential store, while Bengawan Solo, a Singapore-based bakery, has opened its largest store (out of more than 50) in the airport. Overall, local brands are invited to show off and are given prime locations in order to showcase Singapore to the world.
• The Jewel has also managed to become a landmark thanks to their Rain Vortez and Forest Valley, which have become places to visit when staying in Singapore in the same way that tourists want to come and see the world-famous Gardens by the Bay. The Jewel has become more famous than the Gardens by the Bay and Universal Studios.

In addition to these retail essentials, The Jewel offers a double reward programme through a collaboration with CapitaStars: both travelers and local residents can capitalize on points and enjoy benefits that can differ according to the population: travellers are offered early check-in, baggage storage or access to the lounge, while locals can enjoy attractions such as the Changi Experience Studio, the Canopy park, or even behind-the-scenes experiences such as Backstage, which explains how the airport works.

Singapore's department store scene on Orchard Road presents a paradoxical landscape. While the area boasts an impressive concentration of luxury retail and diverse shopping options, the department stores struggle to provide truly differentiated experiences. Despite their long-standing presence, Metro, Isetan, and Takashimaya face challenges in creating memorable shopping environments beyond their ground floors. They often fall into the trap of merely selling products rather than curating experiences, with inconsistent zoning and a lack of cohesive brand narratives throughout their multi-level spaces. Tangs emerges as a notable exception, demonstrating a clearer path towards experiential retail. Its focus on local community engagement, curated offerings, and attention to detail across all floors sets it apart. The ongoing renovations at Tangs suggest a commitment to further enhancing the customer experience.

However, the future of retail experiences in Singapore may not lie within traditional department stores. Innovative concepts like OCBC's multifunctional space in the Isetan Wisma Atria mall and The Jewel at Changi Airport are redefining customer engagement. Both sides of the same coin give access to the future: retail spaces can be redesigned to bring something new and unexpected to customers while not often having to go with a decrease in direct revenue (however, the nature of the revenue will change). In the same manner, even in a 100% concession model such as an airport, brand curation, rooting in the local ecosystem and being able to provide distinct privileges to both locals and tourists remain key to being attractive and interesting.

Department stores have always excelled at those activities, so there is no reason for them not to catch the train while it is still there. Singapore is, in that sense, the perfect reminder that, while it is possible to be swamped by the “business as usual” and the necessity to be profitable today, the mere idea of still being around tomorrow requires a strong vision and will to move the lines in a very significant manner. The path forward for department stores involves reimagining their roles as curators of unique experiences rather than mere product sellers.

Credits: IADS (Selvane Mohandas du Ménil)