SINGAPORE – Singapore’s retail sales growth slowed in July, even as sales of recreational goods and watches and jewellery posted double-digit gains.
Takings at the till rose 1.5 per cent year on year in July, moderating from June’s 4 per cent expansion, according to data from the Singapore Department of Statistics (SingStat).
In a release on Sept 7, SingStat said retail sales excluding motor vehicles, parts and accessories also rose 1.5 per cent year on year, compared with 4.1 per cent growth in June.
On a month-on-month and seasonally adjusted basis, retail sales rose 0.9 per cent in July. Excluding motor vehicles, parts and accessories, sales increased 0.7 per cent.
Total retail sales were estimated at $4.4 billion in July, with online transactions accounting for 15.4 per cent of the total, down from 16.4 per cent in June.
Ethan Hsu, founder and chief executive of retail real estate advisory firm Catbird, cautioned against viewing the slower year-on-year growth as a broad-based pullback in spending.
Pointing to the 0.9 per cent month-on-month increase in seasonally adjusted retail sales, he said: “This suggests that spending momentum has not stalled, but the composition of spending is becoming more uneven.”
Within the retail trade sector, recreational goods saw the strongest year-on-year growth, with sales up 13.9 per cent, driven mainly by higher sales of sporting goods. Sales of watches and jewellery rose 11.1 per cent, mainly due to higher jewellery sales, while computer and telecommunications equipment sales increased 5.1 per cent.
Other industries that recorded year-on-year increases included cosmetics, toiletries and medical goods, where sales rose 4.5 per cent; wearing apparel and footwear, up 2.3 per cent; and furniture and household equipment, up 1.3 per cent.
Sales of motor vehicles, parts and accessories increased 1.4 per cent.
In contrast, sales of food and alcohol fell 5.1 per cent year on year, while sales at department stores declined 3.5 per cent.
Sales in the “others” category fell 4 per cent, while optical goods and books declined 2.2 per cent. Supermarkets and hypermarkets recorded a 2.1 per cent decline, while sales at minimarts and convenience stores fell 1.5 per cent.
Josh Gilbert, lead analyst for the Asia-Pacific at financial trading platform eToro, said some of the year-on-year declines could have been affected by a high comparison base, as SG60 vouchers distributed in July 2025 were spent in categories including supermarkets, minimarts, and food and alcohol.
“Department stores continue to be a genuine weak spot with a sixth decline in seven months, and with online now 15.4 per cent of total sales, that floor space isn’t winning the money back,” he said.
But he noted that discretionary spending remained strong, with recreational goods and watches and jewellery both recording double-digit year-on-year growth.
Sales at petrol service stations declined 1.1 per cent year on year.
On a month-on-month and seasonally adjusted basis, the majority of retail industries recorded growth in July.
Sales of recreational goods rose 7.5 per cent from June. Department stores recorded an increase of 4.6 per cent, while supermarkets and hypermarkets recorded an increase of 4.3 per cent.
In contrast, sales at petrol service stations fell 7.2 per cent month on month, while computer and telecommunications equipment sales declined 4.7 per cent.
“The challenges facing department stores remain structural, given persistently intense competition from e-commerce platforms alongside rising operating costs,” said DBS Bank senior economist Chua Han Teng.
“Rising inflation, which is likely to somewhat erode consumers’ purchasing power, would constrain the pace of retail sales expansion,” he added, referring to the outlook for retail sales in the coming months.
The SingStat data also showed that food and beverage (F&B) services sales fell 1.9 per cent year on year in July, following a 2.3 per cent decline in June.
Total F&B sales were estimated at $1.6 billion, with online transactions accounting for 20.9 per cent of the total, up from 20.4 per cent in June.
Within the F&B sector, foodcourts and other eating places recorded the steepest year-on-year decline, with sales falling 6.6 per cent. Cafe sales edged down 6.4 per cent, while restaurant sales dipped 0.3 per cent.
In contrast, sales at fast-food outlets rose 4.6 per cent year on year, while food caterers recorded a 0.3 per cent increase.
On a month-on-month and seasonally adjusted basis, overall F&B sales rose 0.6 per cent in July.
Sales at fast-food outlets increased 5.8 per cent from June, while food caterers and restaurants recorded increases of 1.4 per cent and 0.4 per cent, respectively.
Sales at foodcourts and other eating places slipped 1.3 per cent, while cafe sales dipped 0.1 per cent.
Hsu said retailers not only face competition from one another but are also contending with consumers taking their spending overseas, whether on holidays or to Johor Bahru. “The key question for retailers is therefore no longer simply whether consumers are willing to spend. It is whether the proposition is strong enough to win that spend,” he said.
“Source:[Singapore retail sales growth slows to 1.5% in July as food, department store takings fall] © Singapore Press Holdings Limited. Permission required for reproduction”
