Singapore retail sales grow 4.5% in October

SINGAPORE - Singapore retail sales grew 4.5 per cent year on year in October, accelerating from the previous month, with most industries recording higher sales, data from the Singapore Department of Statistics released on Dec 5 showed.

Retail sales in September

had grown 2.7 per cent year on year, revised down from a 2.8 per cent rise.

Excluding motor vehicles, retail sales grew 3.7 per cent in October, picking up from September’s revised 1.8 per cent expansion.

On a seasonally adjusted, month-on-month basis, retail sales rose 2.3 per cent in October, compared with a revised 1.7 per cent decline in the previous month.

Excluding motor vehicles, retail sales expanded 2.9 per cent month on month, against September’s 2.6 per cent contraction.

Singapore’s retail sales started the last quarter of 2025 on a bright note, marking the eighth consecutive month of expansion, said DBS Bank senior economist Chua Han Teng.

Ten out of 14 major retail sales categories recorded year-on-year increases in October.

In particular, watches and jewellery and recreational goods experienced double-digit increases of above 20 per cent year on year.

The strong performances were likely boosted by the combination of luxury spenders and higher foreign visitor arrivals driven by the Formula 1 Singapore Grand Prix in early October, said Mr Chua.

The estimated total retail sales value in October was $4.4 billion.

Of this, an estimated 14.5 per cent were from online retail sales, lower than the 15 per cent recorded in September. Excluding motor vehicles, the total retail sales value was about $3.8 billion, of which 16.8 per cent was from online retail sales.

Online retail sales made up 52 per cent of the total sales of computer and telecommunications equipment, 36.6 per cent for furniture and household equipment and 12.5 per cent of the total sales of the supermarkets and hypermarkets industries.

Sales of food & beverage (F&B) services rose 2.4 per cent in October on a year-on-year basis, a turnaround from the 1.6 per cent decline in September. On a seasonally adjusted basis, sales of F&B services increased 4.3 per cent in October compared to the previous month.

The total sales value of F&B services in October was estimated at $1 billion. Of this, an estimated 25.1 per cent were from online sales, slightly lower than the 26.2 per cent recorded in September.

Within the F&B services sector, food caterers registered a growth in sales of 12.8 per cent in October. Similarly, sales of fast food outlets as well as cafes, foodcourts and other eating places increased 4.4 per cent and 1.3 per cent, respectively. Conversely, turnover of restaurants decreased 0.6 per cent during this period.

For the rest of the year, retail sales should benefit from increased seasonal year-end festive spending from both foreign tourists and locals, although partly offset by more residents travelling abroad. This is due to a continued desire for overseas holidays amid a favourable Singapore dollar exchange rate relative to popular destinations, said Mr Chua.

In 2026, retail sales will likely contend with residents being more prudent with their household spending in a challenging economic landscape, especially with businesses becoming more cautious about wage increments, he added.

UOB economist Jester Koh echoed these sentiments, noting that the proportion of firms with intention to raise wages edged lower, according to the Ministry of Manpower in an advance release of its quarterly labour force report on Oct 30.

“Hence, consumers may exercise some restraint in spending which could dampen retail sales activity. The cautious outlook is also reaffirmed by a recent survey by the Singapore National Employers Federation, which found that nearly three in five employers plan to freeze headcount in 2026 amid uncertain business prospects,” he said.