Uptick in local demand for Singapore retailers may be unsustainable: poll

DESPITE the pandemic, about one in two retailers in Singapore still experienced higher sales from September to October this year than last year, but banking on local demand may not be sustainable.

That's according to an American Express survey released on Monday, of 300 small and medium enterprises (SMEs) in Singapore with annual revenues of S$100 million or less.

In particular, 32 per cent of retailers surveyed said they experienced a 50 per cent year-on-year increase in sales over the period. Another 17 per cent of those surveyed saw sales increase more than 50 per cent on the year.

These signs may bode well for retailers ahead of the year-end holiday season. Earlier in November, a Visa study of some 250 small and medium retailers in Singapore showed that 68 per cent of them thought of the holiday season as a "major sales opportunity".

Visa also surveyed 500 consumers in Singapore, of which about four in five still plan to do holiday shopping.

Yet, Ho Yat-Wai, country manager at American Express Singapore, noted that although some businesses experienced higher sales in September and October and may be anticipating strong year-end sales, "it's a question of sustainability".

This is also as most retailers in Singapore still depend on demand from tourists. About nine in 10 of the businesses polled by American Express said that they would see a "moderate" to "significant" impact if inbound travellers don't return by mid-2021.

"Our insights tell us that there is currently pent-up demand from local customers due to the lack of travel, but it remains to be seen if this can outweigh the income from tourism," Mr Ho added.

To give local spending a boost, American Express is thus launching a cashback offer, called Shop Small, to encourage its card members to spend at about 2,000 businesses in Singapore.

For the whole of this December, card members will enjoy S$5 in cashback when they spend at least S$10 at participating businesses, up to three times.

Retailers participating in the campaign can be found at 11 CapitaLand malls and selected precincts such as Kampong Glam, Telok Ayer and Tiong Bahru.

One of them is Aspial, which owns home-grown brands like Lee Hwa Jewellery and Goldheart. Kean Ng, its senior director, said: "After the 'circuit-breaker' period, we are seeing more enthusiastic shoppers visiting our stores compared to pre-Covid times. We are heartened by their support and hope Shop Small will help encourage more residents to support local businesses like ours."