Singapore Retail Sales Surge, F&B Slows
Singapore’s retail and food & beverage (F&B) sectors showed mixed results in July 2024, according to the latest government data. Retail sales increased by 1.0% year-on-year, bouncing back from a 0.6% decline in June. The boost came from a 27.2% surge in motor vehicle purchases, driven by a higher Certificate of Entitlement (COE) quota. However, when excluding motor vehicles, retail sales dropped by 2.3%, continuing a decline from the previous month.
Month-on-month, total retail sales grew by 3.1%, while numbers excluding motor vehicles saw a modest 0.5% rise. The total retail sector value in July amounted to SGD 4.0 billion, with 11.9% of transactions conducted online. Notably, online sales accounted for 49.4% of purchase of Computer & Telecommunications Equipment and 31.8% of purchase of Furniture & Household Equipment, reflecting the growing e-commerce trend in these sectors.
Slower F&B sales despite retail numbers
The F&B sector experienced slower growth. F&B sales increased by just 0.2% year-on-year in July, following a stronger 1.9% growth in June. On a seasonally adjusted basis, F&B sales rose by 0.6% month-on-month, bringing the total to SGD 989 million. Online purchases remained consistent, making up 23.8% of the total F&B sales.
Within the F&B industry, Food Caterers saw the strongest performance, with sales increasing by 18.8% year-on-year. Cafes, Food Courts, and Other Eating Places grew by 2.5%. Meanwhile, Fast Food Outlets and Restaurants reported year-on-year declines of 6.6% and 3.7%, respectively.
Singapore’s fine-dining scene has been hit hard in 2024. Michelin-starred restaurants like Sommer and Béni are closing, along with other high-profile names such as Bam! and Voyage. Rising operational costs, inflation, and low sales due to price-sensitive consumers have forced many fine-dining establishments to shut their doors. However, the competitive dining landscape remains vibrant, with new, more affordable ventures emerging to replace these luxury spots.
As Singapore continues its post-pandemic recovery, the combination of rising motor vehicle sales and cautious consumer spending highlights the ongoing challenges in both retail and F&B sectors.
