Singapore Retail Sales Growth Slows to 1.5% in July as Luxury Holds Firm

Singapore retail sales excluding motor vehicles rose 1.5 per cent year-on-year in July to SG$3.7 billion (US$2.9 billion), slowing from a 4.1 per cent gain in June.

Official Department of Statistics data released on Monday showed shoppers pared back daily supermarket and fuel spending while sustaining double-digit increases on high-end discretionary items. Online transactions generated 18.3 per cent of total retail turnover during the month.

Discretionary Spend Defies Inflation

Recreational goods rose 13.9 per cent year-on-year, propelled by sports equipment purchases. Turnover for watches and jewellery climbed 11.1 per cent over the same period, giving both categories three consecutive months of double-digit expansion.

Everyday retail categories faced a sharper contraction. Fuel receipts dropped 1.1 per cent in July after an 8.0 per cent expansion in June, reflecting a mid-year drop in pump prices before crude costs picked up again heading into late third-quarter trading. Supermarkets, convenience stores, mini-marts, and food and alcohol retailers all posted annual revenue declines.

Right now, this is a market where retailers serving the masses are struggling, while those attracting the wealthy thrive.

Josh Gilbert, lead analyst for Apac at Etoro, noted that households have adjusted their budgets around elevated living expenses by cutting routine spending to protect big-ticket purchases.

Department Stores Squeezed

Department stores suffered their sixth contraction in seven months. The persistent slide exposes structural problems for general merchandise retailers competing against specialized mono-brand stores on one side and cross-border e-commerce platforms on the other.

Landlords across central shopping corridors face an increasingly split tenant base. Prime retail space dedicated to athleisure, fitness gear, and hard luxury continues to deliver higher sales densities, while suburban grocery anchors and legacy multi-brand floors yield lower turnover rents.

Distortions and the Next Baseline

Part of the drag on staple retail reflects a high comparative base from July 2025, when households spent state-issued SG60 vouchers across neighborhood stores and supermarkets.

August retail numbers will reveal whether renewed oil price volatility and the complete runoff of previous fiscal stimulus further weaken food receipts, ahead of fourth-quarter lease renegotiations across major shopping mall portfolios.