Singapore retail sales grow for fourth straight month but at slower pace
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The estimated total retail sales value in Singapore in May stood at $4.5 billion.
ST PHOTO: KELVIN CHNG
- Retail sales in Singapore grew 3% year on year in May but slowed from April’s 5.4% increase.
- Most retail sectors grew yearly, led by recreational goods (23.6%) and watches/jewellery (11.7%).
- Food and beverage services sales were flat year on year in May, with online transactions making up nearly 20% of sales.
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SINGAPORE – Consumers continued to spend more in May than they did a year earlier, extending retail sales growth to a fourth straight month, although the pace of growth slowed from April and spending weakened from the previous month.
Retail sales rose 3 per cent year on year to an estimated $4.5 billion in May, down from the 5.4 per cent growth recorded in April, according to data released by the Singapore Department of Statistics (SingStat) on July 6.
The slower pace of growth comes after retail sales accelerated in April, although consumer spending remained supported by Singapore’s resilient labour market, DBS Bank senior economist Chua Han Teng told The Straits Times.
“Still-resilient and healthy labour market conditions, as reflected in low unemployment and continued household income growth, supported retail sales despite uncertainty stemming from the Middle East conflict during the second quarter,” he said.
Excluding motor vehicles, parts and accessories, retail sales grew 3.7 per cent year on year, moderating from the 4.5 per cent increase recorded in April.
On a month-on-month basis, retail sales in May were weaker than in April, falling 2.3 per cent after accounting for seasonal factors. Excluding motor vehicles, parts and accessories, May sales declined 1.8 per cent from April.
Online transactions accounted for 15.1 per cent of total retail sales, up from 14.7 per cent in April.
Most retail industries posted year-on-year growth, led by recreational goods, where sales jumped 23.6 per cent. Watch and jewellery sales rose 11.7 per cent, while petrol service stations recorded a 9.5 per cent increase, mainly because of higher petrol prices.
Chua said that stronger sales of recreational goods as well as watches and jewellery reflected resilient consumer spending despite broader economic uncertainty during the second quarter.
The increase at petrol service stations marked the third consecutive month of growth, although he expects the pace to moderate as oil prices ease following the cooling of US-Iran tensions since mid-June.
“Growth should moderate as petrol prices ease following the de-escalation of US-Iran tensions since mid-June,” he said.
In contrast, sales at food and alcohol retailers fell 3.7 per cent, while department stores recorded a 3.3 per cent decline in sales from a year earlier.
OCBC Bank chief economist and head of group research Selena Ling said, in comments released to the media, that the weaker performance of food and alcohol retailers and department stores weighed on overall retail sales growth.
She added that spending on discretionary items such as recreational goods, watches and jewellery, and computer and telecommunications equipment remained healthy, suggesting household purchasing power remained resilient amid a strong domestic labour market and continued visitor arrivals from regional markets.
Month on month, however, most retail industries recorded weaker sales. Wearing apparel and footwear posted the steepest decline at 4.9 per cent, followed by motor vehicles, parts and accessories at 4.8 per cent, and food and alcohol retailers at 4.6 per cent.
Recreational goods bucked the trend with an 11.6 per cent jump from April, and furniture and household equipment sales climbed 3.2 per cent.
Looking ahead, Chua expects retail sales to remain resilient as easing geopolitical tensions improve consumer confidence and reduce risks to the labour market.
“Government support measures, including front-loaded CDC vouchers and the enhanced Cost-of-Living Special Payment, should help sustain consumer spending, particularly on essential items purchased at supermarkets,” he said.
Meanwhile, food and beverage (F&B) services were flat compared with a year ago, after edging up 0.1 per cent in April. On a seasonally adjusted basis, sales dipped 0.6 per cent from the previous month.
Total F&B sales were estimated at $1.7 billion in May, with online transactions accounting for 19.8 per cent of sales, slightly lower than the 19.9 per cent recorded in April.
Within the sector, fast food outlets recorded the strongest year-on-year growth at 2.6 per cent, followed by food caterers at 1.9 per cent and restaurants at 1.8 per cent. Cafes, and foodcourts and other eating places saw sales fall 0.5 per cent and 5.3 per cent respectively.
On a month-on-month basis, fast food outlets and food caterers recorded declines of 3.7 per cent and 2.8 per cent respectively, while restaurant sales edged up 0.3 per cent and cafes rose 1.2 per cent.
Ling said retail demand should remain supported by the Republic’s resilient economy and labour market, although the stronger Singapore dollar could encourage more outbound travel by Singaporeans, particularly during holiday periods.
She added that department stores and F&B operators may continue facing pressure from e-commerce competition and rising business costs, while major events later in 2026, including the Formula One Singapore Grand Prix and BTS concerts, could provide a boost to tourism and retail spending.
