Retail sales fall 2.2% in September, 8th straight month of decline

SINGAPORE - Takings at the till fell for the eighth consecutive month in September, according to data released by the Department of Statistics on Tuesday (Nov 12).

Retail sales shrank 2.2 per cent compared with the same month last year. This was less than the 4 per cent drop in August and better than the 3 per cent fall expected by analysts polled by Bloomberg.

Excluding motor vehicles, retail sales dropped by a much smaller 0.3 per cent year on year.

Motor vehicle sales saw the biggest fall among all categories of 12.3 per cent, though that was less than its 20.3 per cent plunge in August.

Month-on-month and seasonally-adjusted, retail sales rose 1.9 per cent, and increased by 0.8 per cent excluding vehicles.

Analysts said the decline in retail sales could be bottoming out.

Maybank Kim Eng economist Lee Ju Ye noted that sales in September were supported by some improvement in consumer sentiment and an uptick in visitor arrivals.

This was due to the Singapore Grand Prix and also the diversion of leisure and business travellers from Hong Kong caused by protests.

Ms Lee said that retail sales are likely to continue improving in coming months.

"Consumer sentiment may be past the worst, with September numbers showing some improvement in discretionary items," she said, citing the rebound in computer and telecommunications equipment and a slower decline in watches and jewellery sales.

For September, furniture and household equipment sales were one of the hardest hit, posting an 8.9 per cent decline.

Recreational goods sales plunged 6.1 per cent, while the watches and jewellery industry fell by 4.4 per cent.

Food retailers, which sell food and drink generally not meant for immediate consumption, saw a 0.5 per cent fall in sales.

However, retailers of computer and telecommunications equipment saw takings grow by 8.7 per cent.

Wearing apparel and footwear sales also increased 4.2 per cent, while sellers of medical goods and toiletries saw growth of 3.2 per cent.

The supermarkets and hypermarkets segment also posted 0.8 per cent growth.

Sales of food and beverage services in September grew 4.3 per cent compared with the previous year.

Fast food outlets saw the biggest improvement in sales, posting a 12.5 per cent increase, while cafes, food courts and other eating places grew 4.6 per cent. Restaurant takings went up by 2.7 per cent.

However, food caterers registered a 0.5 per cent decline.

The total sales value of food and beverage services in September this year was estimated at $882 million, compared with $846 million in September last year.

The estimated total retail sales value in September this year was about $3.5 billion. Online retail sales made up an estimated 6.9 per cent of this figure.