Singapore retail sales fell 2.8% in August, ending 6-month expansion streak

SINGAPORE'S retail sales fell 2.8 per cent year on year in August, ending a six-month streak of expansion as last year's low-base effect fade, according to data from the Department of Statistics Singapore (SingStat) on Tuesday.

August's showing was mainly dragged by lower motor vehicle sales, which tumbled 17.5 per cent, corresponding with the lower Certificate of Entitlement quota this year, SingStat noted.

Excluding motor vehicles, retail sales were at a similar level as August 2020, down from the 2 per cent growth in the previous month. Total retail sales in July grew 0.2 per cent.

On a seasonally-adjusted month-on-month basis, total retail sales fell 0.6 per cent in August, while the equivalent decline was 1.2 per cent excluding motor vehicles.

On the whole, retail sales value remained below pre-Covid-19 levels at S$3.4 billion in August. Online retail sales comprised about 14.1 per cent of this amount, growing from July's 13.8 per cent.

A majority of industries saw year-on-year declines in sales. After motor vehicles, optical goods and books was the next biggest loser with a 9.6 per cent fall, followed by department stores at 8.5 per cent.

Petrol service stations made the biggest gains with a 23.7 per cent growth in sales, followed by watches and jewellery at 7.9 per cent. Sales at supermarkets and hypermarkets grew 4.6 per cent.

Sequentially, computer and telecommunications equipment saw the largest drop in sales at 9.1 per cent. Supermarkets and hypermarkets fell 5.1 per cent, while mini-marts and convenience stores slid 4.6 per cent.

Watches and jewellery saw the largest month-on-month growth at 6.6 per cent, with furniture and household equipment in second place at 6.5 per cent. Sales of optical goods and books grew 4.9 per cent.

Separately, sales of food and beverage (F&B) services fell 6.7 per cent year on year, extending July's 6 per cent decline; month on month, F&B services fell 2.1 per cent in August.

This was due to stricter dine-in restrictions due to Covid-19 in August, where diners were banned from eating in until August 9. Up to five vaccinated individuals could dine together from August 10.

Restaurant sales slumped 24.5 per cent year on year, although they saw a 0.4 per cent sequential growth.

Fast food outlets saw a 8.7 per cent year-on-year growth in sales but month on month sales dropped 4.7 per cent.

Sales at cafes, food courts and other eating places grew 3.1 per cent year on year, while the month-on-month figure fell 2.5 per cent.

Food caterers saw sales edge up 0.1 per cent year on year, but on a month -on-month basis, it fell 3 per cent.