Retail sales growth picks up in June, led by recreational goods and jewellery
Most retail industries recorded higher sales than a year ago.
Retail sales in Singapore surged in June, propelled by an uptick in recreational goods and jewellery sales. Year-on-year, total retail sales rose 4%, compared to a 2.9% increase in May. Sales growth was particularly strong in recreational goods, which surged 11.4%, driven by higher sales of sporting equipment. Sales of watches and jewellery also saw a notable 10.5% rise.
Sales of computer and telecommunications equipment grew by 9.8%. Retailer DBS economist Chua Han Teng noted that consumer spending on such items remained robust. Meanwhile, supermarket sales accelerated to a 7.3% year-on-year increase, driven by the influx of front-loaded Consumer Discount Card (CDC) vouchers. However, department store sales declined by 9.5%, and sales of wearing apparel and footwear dropped by 1.7%.
Retail analyst Josh Gilbert attributed this decline to structural shifts, as consumers increasingly seek brands, experiences, and lifestyles rather than just products. Online transactions accounted for 16.4% of total retail sales, up from 15.3% in May. While motor vehicle sales rose by 5.9% after accounting for seasonal factors, sales of recreational goods fell by 11.2% from May, and minimarts and convenience stores saw a 5.4% drop.
Looking ahead, Chua expects stable labor conditions, government support, and higher tourist spending to sustain retail growth. However, he warns that rising inflation could erode consumers' purchasing power. Food and beverage sales fell 2.3% year-on-year, with cafes recording the steepest decline of 3.9%.
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