Singapore retail sales returning to pre-pandemic levels, but headwinds persist

SINGAPORE’S retail sector is showing signs of picking up, although retailers face looming headwinds in the form of inflation and a potential recession, according to the National University of Singapore’s Institute of Real Estate and Urban Studies (IREUS).

The easing of border curbs and the loosening of safe-distancing measures are fostering a recovery in the retail sector, with Singapore’s retail sales index clocking 93.2 in Q1 2022, up sharply from 54.9 in Q2 2020 as the pandemic spread across the globe. The Q1 print is not far off from the 98.3 chalked up pre-pandemic in Q1 2019.

However, some segments of the retail market have underperformed others and have yet to bounce back entirely. The retail sales index score for department stores, for instance, was languishing at 74.6 in Q1 2022, well below the 98.7 registered in Q1 2019, as the pandemic accelerated e-commerce’s reach.