Retail sales surge driven by festive period, with food and alcohol seeing major gains
Singapore’s retail sales saw a significant year-on-year increase of 8.4% in February, reaching a total of S$3.9 billion, driven largely by the Chinese New Year (CNY) festivities. This was a notable improvement from the 1.6% growth in January and exceeded economists’ expectations, which had predicted a 1.9% increase.
On a month-on-month basis, retail sales also grew by 3%, reversing a 0.7% decline in January. Excluding motor vehicles, retail sales rose by 9.4% compared to the previous year. This growth was further supported by a 1.8% increase on a seasonally adjusted basis.
The surge in February was largely attributed to the CNY celebrations, which took place in February this year, unlike in 2023 when it fell in January. OCBC’s chief economist, Selena Ling, pointed out that the 30-day visa-free travel arrangement between China and Singapore, starting February 9, also contributed to the increase in retail activity, with Chinese tourists accounting for 22.7% of the 1.44 million visitors during the month.
Retail categories saw broad-based growth, with food and alcohol sales showing the fastest year-on-year growth. The improvement was likely driven by increased spending from both local consumers and foreign tourists, particularly during the festive season. On a monthly basis, sales in categories such as furniture and household equipment saw the biggest jump, rising 16.6%.
Food and beverage (F&B) services also experienced a robust 14.7% year-on-year growth, bouncing back from a 5.5% decline in January. All F&B categories recorded year-on-year gains, with food caterers and restaurants seeing the most significant advances.
The strong retail performance in February highlights the continued recovery of Singapore’s retail sector, driven by both domestic and international spending during key festive periods.
