Retail sales rise 2.8% in Sept amid pre-F1 season and major concerts

SINGAPORE – Retail sales grew 2.8 per cent year on year in September, moderating from August’s 5.3 per cent growth, data from the Department of Statistics released on Nov 5 showed.

Excluding motor vehicles, retail sales rose 2 per cent, following the 4.7 per cent growth recorded in August.

On a seasonally adjusted basis, retail sales fell 1.4 per cent in September over the previous month. Excluding motor vehicles, seasonally adjusted retail sales decreased 2.3 per cent compared with August, which saw a growth of 1.5 per cent.

The estimated total retail sales value in September was $4.1 billion. Of this, an estimated 14.9 per cent was from online retail sales, higher than the 13.1 per cent recorded in August.

Excluding motor vehicles, the total retail sales value was about $3.5 billion, of which 17.6 per cent was from online retail sales.

Online retail sales accounted for 55.1 per cent of total sales in the computer and telecommunications equipment segment, 35.4 per cent of all sales of furniture and household equipment, and 12.2 per cent of the total sales seen in supermarkets and hypermarkets.

Within the retail trade sector, most industries recorded year-on-year sales growth in September. Sales of watches and jewellery increased 16.6 per cent, mainly driven by higher jewellery sales.

Sales of recreational goods rose 11 per cent, while sales of motor vehicles rose 7.8 per cent. In contrast, petrol service stations recorded a year-on-year decline in sales of 8 per cent, while retailers of wearing apparel and footwear recorded a year-on-year fall in sales of 3.6 per cent in September.

Food and beverage (F&B) services sales declined 1.6 per cent in September on a year-on-year basis, compared with a 0.2 per cent decrease the month before.

On a seasonally adjusted basis, sales in F&B services fell 1.3 per cent in September over the previous month. The total sales value of F&B services in September was estimated at $966 million. Of this, an estimated 26.3 per cent was from online sales, comparable with the 26.1 per cent recorded in August.

Within the F&B services sector, restaurants declined 10.6 per cent in September. Conversely, the turnover of food caterers increased by 16.8 per cent, sales in fast food outlets increased by 1.8 per cent, and cafes, foodcourts and other eating places saw a 0.2 per cent increase in sales during this period.

Retail sales were moderate in September, likely due to fewer tourist arrivals and more Singapore residents travelling abroad, said Mr Jester Koh, associate economist at UOB.

The boost to supermarkets from CDC vouchers appears to be waning after the surge observed in July and August, but there will be another tranche of CDC vouchers in January 2026, said Maybank economist Chua Hak Bin.

Strong sales in some of the discretionary retail item areas, particularly watches and jewellery and recreational goods, came as a surprise, said Mr Chua. He added that higher visitor arrivals and more big spenders ahead of the F1 race and major concerts may have boosted luxury spending.

Said Mr Koh: “October’s retail sales may have received a lift from the Formula One Singapore Grand Prix, popular concerts, and likely higher Chinese tourist arrivals amid China’s October Golden Week holiday.”