Singapore Retail Sales Growth Slows to 1.5% in July as Luxury Holds Firm
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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.
Questions & Answers
Q.What was the total value of Singapore's retail sales in July?
What was the total value of Singapore's retail sales in July?
Singapore's total retail sales, excluding motor vehicles, reached SG$3.7 billion (US$2.9 billion) in July. This figure reflects a 1.5 per cent year-on-year increase for the month.
Q.Which retail categories showed strong growth despite the overall slowdown?
Which retail categories showed strong growth despite the overall slowdown?
High-end discretionary items, such as recreational goods and watches and jewellery, showed significant growth. Recreational goods rose 13.9 per cent, while watches and jewellery climbed 11.1 per cent year-on-year.
Q.Why did spending on everyday items like fuel and groceries decrease?
Why did spending on everyday items like fuel and groceries decrease?
Shoppers pared back spending on daily supermarket and fuel items, reflecting adjustments to elevated living expenses. Fuel receipts dropped after mid-year pump price changes, and some staple retail faced a high comparative base from July 2025.
Q.What is contributing to the persistent struggles faced by department stores?
What is contributing to the persistent struggles faced by department stores?
Department stores are facing structural problems, competing against specialised mono-brand stores and cross-border e-commerce platforms. This has led to their sixth contraction in seven months.
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