Singapore retail sales rebound in March amid uneven recovery

[SINGAPORE] Retail sales in Singapore bounced back in March, with the strongest growth seen in the watches and jewellery segment, according to data released by the Department of Statistics on May 5.

Compared to the same month last year, retail sales rose by 1.1 per cent, reversing February’s 3.5 per cent decline. When excluding motor vehicles, sales increased by 0.7 per cent, a recovery from the sharp 6.5 per cent fall in the previous month.

This rebound is in line with a modest pick-up in consumer sentiment, underpinned by stabilising inflation and marginally lower interest rates, which have supported household spending. Economists view this as a reflection of Singapore’s gradually improving economic conditions in the first quarter of 2025.

The total value of retail sales in March stood at $4.3 billion, with online transactions comprising 13.4 per cent—up from 12.3 per cent in February.

Online sales were especially significant in certain categories, accounting for 50.5 per cent of computer and telecommunications equipment sales, 32.8 per cent of furniture and household equipment, and 13.1 per cent of supermarket and hypermarket sales.

This sustained momentum in e-commerce points to evolving consumer habits, with shoppers gravitating toward convenience and competitive pricing. Analysts note that retailers with integrated online and offline strategies are better positioned to capitalise on these shifting trends.

Half of the retail trade industries posted year-on-year gains in March. Watches and jewellery led the way with a 13.5 per cent surge, largely due to higher demand for jewellery. Cosmetics, toiletries and medical goods rose by 3.6 per cent, while sales at supermarkets and hypermarkets increased 3.4 per cent.

However, some segments continued to face headwinds. Petrol service stations and the wearing apparel and footwear segment recorded declines of 8.2 per cent and 8 per cent respectively. Analysts suggest these declines may reflect both structural shifts—such as the transition to electric vehicles—and cautious consumer spending amid ongoing economic uncertainty.

Despite the overall year-on-year improvement, performance across the 14 major retail categories remained uneven, noted DBS Bank senior economist Chua Han Teng. He highlighted that discretionary spending on products such as clothing, books, and optical goods was down in March compared to the previous year.

Chua warned that weakening labour market conditions could place further pressure on household consumption and retail performance. Recent figures showed a modest rise in unemployment, particularly in manufacturing and trade-related industries, which may weigh on consumer sentiment moving forward.

In the food and beverage sector, sales dropped 2.8 per cent year-on-year in March, following a 5.7 per cent decline in February. Seasonally adjusted data showed a 3.2 per cent month-on-month fall.

The total F&B sales value was estimated at $960 million, with online sales contributing 24.9 per cent—an increase from 23.2 per cent the month prior. Within the sector, restaurant sales fell 6.6 per cent and fast-food outlets saw a 3.6 per cent dip, while food caterers posted a 19.6 per cent year-on-year increase.

Industry watchers say the uptick in catering may reflect a return to larger-scale events and gatherings, even as overall dining-out demand remains subdued. Many F&B operators are responding with discounts and value-driven offerings to appeal to price-sensitive customers.

Looking ahead, Chua cautioned that downside risks remain. “Ongoing global trade tensions could hamper Singapore’s export-driven economy, especially in the latter half of 2025. This could affect employment and wage growth, and in turn, dampen retail sales,” he said.