Department stores shrink, add dining and wellness

Social media and e-commerce are raising shopper expectations.

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Department stores are shrinking in size but widening their mix to include dining, wellness, and experiential retail as online shopping accelerates and foot traffic falls.

“Department stores like Robinsons, BHG, Isetan and Metro have downsized,” Sulian Tan-Wijaya, executive director of retail and lifestyle at Savills Singapore Pte Ltd., told Singapore Business Review. “There is a gradual shift from the traditional multi-brand department store format to more curated lifestyle concepts to keep up with changes in customer preferences.”

At Tang Plaza, the basement of TANGS has been converted into a Hawkers’ Street featuring heritage food, including Michelin-recognised stalls.

Specialty anchors such as Don Quijote Co. Ltd. now blend shopping with dining, whilst NTUC’s FairPrice Finest at Clarke Quay has reimagined its supermarket into a Grocer Food Hall, where shoppers can choose fresh meat or seafood and have it cooked onsite for dining.

Fashion is also leaning into lifestyle. The Editor’s Market at Takashimaya incorporates café concepts inspired by Korean coffee culture, drawing in younger shoppers and customers.