S’pore retail sales rise 4.8%, exceeding expectations

SINGAPORE - Retail sales grew 4.8 per cent year on year in July, rising from June’s revised 2.4 per cent increase, data from the Department of Statistics released on Sept 5 showed.

The rise was more than double the median estimate of 2.1 per cent growth from Bloomberg economists.

On a seasonally adjusted monthly basis, retail sales grew 4.1 per cent, reversing from the 1.1 per cent decline posted in June. Excluding motor vehicles, retail sales were up 3.8 per cent month on month, against June’s 1.2 per cent fall.

The estimated total retail sales value in July was $4.2 billion.

Of this, an estimated 13.1 per cent were from online retail sales, compared with the 13.5 per cent recorded in June and the 12 per cent in July 2024.

Excluding motor vehicles, the total retail sales value was about $3.6 billion, of which 15.5 per cent were from online retail sales.

Online retail sales made up 54 per cent of the total sales of computer and telecommunications equipment, 32.8 per cent of furniture and household equipment sold, and 11.8 per cent of the total sales of the supermarket and hypermarket industries.

The majority of industries saw year-on-year growth in sales. The sales of computer and telecommunications equipment rose by 11.1 per cent, while that of watches and jewellery rose by 9.6 per cent.

Similarly, sales of optical goods and books recorded growth of 8.6 per cent, owing to higher sales of books.

In contrast, petrol service stations recorded year-on-year declines in sales of 5.6 per cent, while the retailers of wearing apparel and footwear saw a decline of 3.1 per cent in July.

Sales of food and beverage (F&B) services rose 1.7 per cent in July on a year-on-year basis, compared with the flat growth in June.

On a seasonally adjusted basis, sales of F&B services rose 1.4 per cent in July compared with the previous month.

The total sales value of F&B services in July was estimated at $1 billion. Of this, an estimated 25.9 per cent were from online sales, lower than the 26.8 per cent recorded in June but higher than the 23.8 per cent in July 2024.

Within the F&B services sector, food caterers registered year-on-year growth in sales of 14.7 per cent.

Similarly, turnover of fast-food outlets rose by 4.8 per cent, while that for cafes, foodcourts and other eating places increased by 0.5 per cent during this period.

In contrast, turnover of restaurants declined 2.4 per cent during this period.

Consumers must be feeling more optimistic and willing to spend, with CDC vouchers driving supermarket sales, said Maybank Research senior economist Chua Hak Bin.

Exuberance from the rising stock market and property prices appear to be spilling over to discretionary spending, including on watches and jewellery, he added.

Falling interest rates could be easing cash flow pressures and leaving change on the table for some retail therapy, said Dr Chua.

The recovery in retail spending comes despite a backdrop of global uncertainty and will help cushion the blow from any trade slowdown, he added.

“We remain positive on the outlook, forecasting gross domestic product (GDP) growth of 3.2 per cent in 2025, well above the Ministry of Trade and Industry’s (MTI) forecast range. Falling interest rates, a construction boom and generous fiscal support will help cushion any trade slowdown from the reciprocal tariffs.”

The MTI had in August forecast GDP growth of 1.5 per cent to 2.5 per cent for 2025.