6-4-2024 (SINGAPORE) Retail sales in Singapore surged in February, recording their second consecutive month of gains, according to data released by the Department of Statistics on April 5.
The figures revealed an 8.4 per cent increase in takings at the till compared to February 2023, following a 1.6 per cent rise year-on-year in January.
Excluding motor vehicles, retail sales saw an even more significant rise of 9.4 per cent, reversing the 1.8 per cent decrease observed in January. Notably, half of the retail categories experienced an uptick in turnover.
On a seasonally adjusted basis, sales increased by 3 per cent in February compared to January.
Sales at food and alcohol retailers saw a remarkable growth of 31.4 per cent compared to February 2023, while turnover at supermarkets and hypermarkets rose by 19.2 per cent.
DBS Bank economist Chua Han Teng noted that food and alcohol sales were the fastest-growing category in February 2024, attributing the surge to both local and foreign tourist spending, particularly driven by Chinese tourists due to the Chinese New Year holidays and the start of the Singapore-China mutual visa-free travel arrangement from Feb 9.
Sales of watches and jewellery increased by 16.8 per cent, while retailers of optical goods and books experienced a 9.3 per cent decline. Similarly, sales of computer and telecommunications equipment decreased by 7.7 per cent, while sales of motor vehicles rose by 1.5 per cent.
OCBC Bank chief economist Selena Ling highlighted the drop in certificate of entitlement premiums in February, which led to increased demand and could potentially result in higher motor vehicle sales in the coming months.
Online sales accounted for 10.9 per cent of the total retail sales value in February, down slightly from January’s 11 per cent.
Looking ahead, UOB economists Alvin Liew and Jester Koh anticipate retailers to benefit from major sports events, concerts, business travel, and tourism-related activities. They expect a resilient showing in March retail sales, particularly due to events like the Taylor Swift Eras Tour.
Sales at food and beverage services also saw a significant uplift, rising by 14.7 per cent year-on-year, attributed to the celebration of Chinese New Year in February 2024 as opposed to January in 2023.
While domestic labour market conditions may soften slightly, Ms Ling pointed out the positive outlook provided by the Singapore Tourism Board’s forecast of 15 million to 16 million international visitor arrivals in 2024, potentially bringing in $26 billion to $27.5 billion in tourism receipts.
