The slump in retail sales eased in October, although most segments still registered double-digit decline, according to data released by the Department of Statistics yesterday.
Takings at the till dropped 8.6 per cent compared with October last year, an improvement from the revised 10.7 per cent fall in September.
Excluding motor vehicles, the decline was larger, at 11.2 per cent.
But when compared with the previous month, seasonally adjusted retail sales in October posted a slight growth of 0.2 per cent.
Ms Selena Ling, OCBC Bank head of treasury research and strategy, said: "There is some glimmer of light at the end of the tunnel with the month-on-month improvement, but still quite distant for now.
"I do not expect retail sales to revert to positive year-on-year growth territory till early 2021, possibly around Chinese New Year in February. Second-quarter retail sales for next year will also likely see a big jump due to the very low base this year."
Maybank Kim Eng analyst Chua Hak Bin noted that retail sales are stagnating at about a tenth below pre-pandemic levels, after rebounding from the lows during the circuit breaker period.
"The tunnel is still a long one as the vaccine will likely only be widely available in the second quarter at the earliest," he said.
On a year-on-year basis, most retail industries still continued to register declines.
The slump in takings was led by food and alcohol, where sales fell by 44.7 per cent, followed by department stores which saw takings drop by 35.2 per cent.
Retailers of cosmetics, toiletries and medical goods saw sales fall by 30 per cent, while wearing apparel and footwear takings also slid, by 26.3 per cent.
Sales of watches and jewellery, computer and telecommunications equipment, and optical goods and books also tumbled.
But sales at supermarkets and hypermarkets continued to rise, by 22.3 per cent.
Retailers of furniture and household equipment also saw increased sales of 12.5 per cent, while recreational goods takings rose by 9.8 per cent.
Meanwhile, sales of food and beverage services fell 23.5 per cent.
Food caterers again led the fall in sales, with a plunge of 76.4 per cent. Restaurants saw takings drop by 26.2 per cent. Cafes, foodcourts and other eating places, and fast food outlets also saw dips in sales.
The total sales value of food and beverage services in October was estimated at $692 million. Online sales made up about 19.7 per cent.
Ms Ling said: "Given that the SingapoRediscovers Vouchers are meant more for domestic tourism in the form of staycations and tourism attractions, they may have limited impact on retail sales per se.
"That said, Singaporeans are largely stuck here for the festive season, so there may be a bit of 'boredom' spending going on in terms of F&B and shopping."
The overall estimated total retail sales value was about $3.3 billion, of which online retail sales made up about 10.5 per cent.
This trend of online buying is especially evident for computer and telecommunications equipment, where digital takings made up almost half of the total takings.
Ms Ling added: "Online sales are definitely the way to go and will continue to grow over time. Consumer preference has been shifting rapidly to e-commerce and was further accelerated by Covid-19, so the pressure is on retailers, including department stores, to continue to revamp their business models."
