Singapore retail sales up 11.1% in 2021 after year-end rise in December

SINGAPORE retail sales surged by 11.1 per cent year on year in 2021, reversing the previous year's 15.3 per cent decline and snapping a 3-year losing streak.

Full-year growth was supported by annual improvements in discretionary segments such as motor vehicles, clothes and shoes, watches and jewellery, and recreational goods.

Excluding motor vehicles, retail sales were up by 10.5 per cent for the year.

The rebound was helped by a year-end shopping spree, as retail sales expanded by 6.7 per cent year on year in December, picking up from the 2.2 per cent rise in the month before.

The growth, which beat the median forecast of 4.6 per cent in a Bloomberg poll, came on both broad-based demand from shoppers and higher pump prices for petrol service stations.

On a month-on-month, seasonally adjusted basis, sales increased by 2.3 per cent, according to figures from the Department of Statistics (SingStat) on Friday (Feb 4).

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Till takings came to S$4.4 billion in all, with online sales making up 14.6 per cent.

Excluding motor vehicles, retail sales grew by 8.6 per cent year on year, or 2 per cent on a seasonally adjusted, monthly basis.

Most retail segments recorded expansions for December, except for mini-marts and convenience stores; motor vehicles; optical goods and books; and others.

Meanwhile, food and beverage services sales grew by 3.9 per cent for the full year.

Over the festive period, food and beverage services sales rose in December by 7.4 per cent year on year to S$855 million, with online sales accounting for 28.6 per cent.

Receipts improved by 11.7 per cent on a seasonally adjusted, monthly basis, which SingStat attributed to a lower base in November, when pandemic-related dine-in restrictions were stricter.

Growth was reported across all segments:

• Restaurants (9.1 per cent)
• Fast food outlets (1 per cent)
• Food caterers (47.2 per cent)
• Cafes, food courts and other eating places (4.6 per cent)

OCBC chief economist Selena Ling called the retail showing "a sign that private consumption is bouncing back" and in line with economic and labour market recovery.

But the double-digit growth was helped by a low-base effect and is unlikely to be repeated in 2022, unless Singapore sees a significant rise in visitor arrivals, she added.

Ling has projected retail sales to grow by 2 per cent to 4 per cent in 2022, while UOB economist Barnabas Gan tipped a rosier full-year expansion of 6 per cent.

Noting that the growth in 2021 was fuelled by domestic spending, Gan said: "We expect that domestic retailers will likely see some support as borders reopen gradually, while further economic recovery would be a linchpin for domestic retail demand."