Singapore retail takings eke out 1% rise in July, thanks to car sales
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Motor vehicle sales rose 27.2 per cent year on year in July amid a higher certificate of entitlement quota.
PHOTO: ST FILE
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SINGAPORE – Total takings at the shopping till in Singapore turned positive in July, as a higher certificate of entitlement quota drove up car sales.
Retail sales rose 1 per cent in July from the same month a year earlier,
Also, excluding motor vehicle sales, July’s retail turnover fell 2.3 per cent, extending a 3.1 per cent drop in June. Retail sales have been lifted by those of vehicles in recent months, and have otherwise dropped or remained flat.
UOB associate economist Jester Koh said that retail sales were sluggish despite strong tourist arrivals. Visitor arrivals rose to 1.6 million in July – or 89 per cent of 2019 levels – with the influx driven by tourists from China and Europe during the summer school holidays.
“Nonetheless, the recovery in tourist arrivals towards pre-pandemic levels has been somewhat challenging, possibly due to a rising preference for domestic tourism among Chinese tourists above overseas travel,” he said.
Singapore’s competitiveness as a tourism destination has likely been weighed down by higher price levels compared with other Asean economies, as well as a strong Singapore dollar, said Mr Koh.
DBS Bank economist Chua Han Teng said residents likely reined in their spending in July after travelling overseas during the June school holidays.
“We anticipate improved retail sales momentum in the second half of 2024 compared with the weakness experienced in the second quarter,” he said.
A net weighted balance of 4 per cent of retailers expect improved business conditions in the second half of the year, noted Mr Chua, citing a recent SingStat survey of business expectations in the services sector. “This represents a significant shift from the pessimism expressed for the period between April to September.”
Both Mr Chua and Mr Koh said retail sales could be lifted by major events such as concerts and the Formula One Singapore Grand Prix in September, as well as the Government’s enhanced Assurance Package to help Singaporeans cope with the higher cost of living.
In July, nine of the 14 retail categories recorded a year-on-year decrease in sales.
Takings at department stores fell the most, by 11.2 per cent, while sales of apparel and footwear dropped 10.3 per cent, and those of optical goods and books fell 8.7 per cent mainly due to lower sales of books.
In contrast, motor vehicle sales surged 27.2 per cent, while takings at petrol service stations, supermarkets and hypermarkets, as well as sales of food, alcohol, watches and jewellery, grew between 0.8 per cent and 4.7 per cent.
The total retail sales value was estimated at $4 billion in July, with 11.9 per cent coming from online shopping, similar to the 12.1 per cent recorded in June.
Online retail sales made up 49.4 per cent of the total sales of computer and telecommunications equipment, 31.8 per cent of furniture and household equipment sales and 12.9 per cent of takings in supermarkets and hypermarkets.
Meanwhile, sales of food and beverage services increased 0.2 per cent year on year in July, slowing from the 1.9 per cent growth in June.
Food catering revenue rose 18.8 per cent, while the turnover at cafes, foodcourts and other eating places increased 2.5 per cent. However, takings fell 6.6 per cent at fast-food outlets and 3.7 per cent at restaurants.
The total sales value of food and beverage services in July was estimated at $989 million, with 23.8 per cent coming from online platforms, the same as in June.
