Singapore retailers began the year on a gloomy note, with sales falling 6.1 per cent in January from the same month a year ago, according to data released by the Department of Statistics (SingStat) yesterday.
This was a steeper decline than December's upwardly revised 3.3 per cent drop in sales, and marks the 24th straight month that retail sales have fallen year on year.
The decline in January was partially due to higher sales recorded in the same month last year, when Chinese New Year was celebrated, said SingStat. This year, the festival fell in February.
Excluding motor vehicles, retail sales fell 8.4 per cent in January. In comparison, December saw a revised 4.2 per cent drop.
The slump in takings was led by food and alcohol, where sales sank 43.6 per cent, followed by department stores at 36.1 per cent and cosmetics, toiletries and medical goods at 31.8 per cent.
The food and beverage service sector saw a bigger year-on-year sales decline in January, with takings down 24.7 per cent, compared with a 16.3 per cent drop in December.
Food caterers led the fall in sales, with a plunge of 76 per cent, followed by restaurants at 30.2 per cent. Sales at cafes, foodcourts and other eating places fell 6.8 per cent, while takings at fast-food outlets fell 6.7 per cent.
On a seasonally adjusted basis, retail sales fell 1.8 per cent in January over the previous month.
Excluding motor vehicles, they fell by a bigger 2.4 per cent compared with December.
The estimated total retail sales value in January was $3.8 billion, with online sales making up 10.3 per cent of the total. This was lower than the 10.9 per cent recorded in December.
Online retail sales of computer and telecommunications equipment accounted for 40.8 per cent of total retail sales, followed by furniture and household items at 23.3 per cent and supermarkets and hypermarkets at 11.6 per cent.
The total sales value of the food and beverage services was estimated at $720 million, with online sales making up 22.1 per cent, higher than the 21.3 per cent lodged in December.
CIMB Private Banking economist Song Seng Wun said he had expected food and beverage services to perform better in January, but said the results reflect "a somewhat cautious mode", even as Singapore is in the third phase of its reopening.
"It would take a significant easing in restrictions to see sales go back to pre-Covid-19 levels. That will likely take a while to happen," he said.
UOB economist Barnabas Gan said he expects retail sales to continue to stay subdued at least into the first half of this year.
But he noted that there were signs of improving domestic demand, as observed in the strong sales growth in furniture, household equipment, telecommunications and computers, and motor vehicles.
This improving domestic demand could allow a rebound in the second half of this year, he added.
