Singapore retail sales rise 11.8% in January due to increased spending before Chinese New Year

SINGAPORE: Singapore's retail sales rose 11.8 per cent year-on-year in January, compared to the increase of 6.7 per cent in December.

The growth was mainly attributed to increased spending prior to Chinese New Year which was in early February this year, according to data released by the Singapore Department of Statistics (SingStat) on Friday (Mar 4).

The agency noted that pre-Chinese New Year spending in 2021 took place mostly in February as Chinese New Year was in mid-February then.

Excluding motor vehicles, retail sales rose 15.8 per cent compared to the 8.6 per cent growth in December.

The estimated total retail sales value came in at S$4.2 billion, of which online retail sales made up an estimated 12.9 per cent. This was lower than the 14.4 per cent recorded in December, when there were major online shopping events such as 12.12 sales.

However, on a seasonally adjusted month-on-month basis, retail sales fell 2.5 per cent compared to the growth of 1.3 per cent in December. Sales also declined 2.1 per cent when motor vehicles were excluded.

GROWTH IN SALES FOR MOST RETAIL INDUSTRIES

Most industries within the retail trade sector saw year-on-year growths in sales in January.

The sales of watches and jewellery, wearing apparel and footwear as well as department stores increased between 26.0 per cent and 29.0 per cent, mainly due to pre-Chinese New Year spending, said SingStat.

Petrol service stations also registered a growth in sales of 25.5 per cent, partially due to higher petrol prices.

In contrast, sales of motor vehicles, as well as optical goods and books fell 12.0 per cent and 5.5 per cent respectively during this period.

On a seasonally adjusted month-on-month basis, most industries recorded declines in sales in January.

Industries such as food and alcohol as well as motor vehicles saw declines in sales of 17.8 per cent and 5.3 per cent respectively. The sales of minimarts and convenience stores, supermarkets and hypermarkets as well as cosmetics, toiletries and medical goods fell between 3.2 per cent and 5.3 per cent.

The recreational goods industry, on the other hand, saw an increase in sales of 2.9 per cent during this period.

FOOD AND BEVERAGE SERVICES

Sales of food and beverage (F&B) services increased 9.5 per cent year-on-year in January, compared to the 7.3 per cent in December.

Sales of food caterers rose 47.0 per cent on a year-on-year basis, due to the low base in 2021 when demand for catering was low. Restaurants, fast food outlets and cafes, food courts and other eating places also saw sales increase.  

Sales of restaurants fell 5.4 per cent in January on a seasonally adjusted month-on-month basis, a reversal from the 19.3 per cent rise in December.

This was due in part to the higher base in December last year following the easing of dine-in restrictions in late November.

Similarly, sales of cafes, food courts and other eating places as well as fast food outlets also declined.

In contrast, sales of food caterers increased 2.0 per cent during this period.

The total sales value of F&B services in January this year was estimated at S$829 million, of which online sales made up an estimated 29.1 per cent, a slight increase from the 28.6 per cent recorded in December 2021.