Grocers could expect a kick in sales from snacks and takeaway foods.
According to RHB Research, there are two key 2018 events in Singapore to watch out for that will prompt consumers to spend: the World Cup and the Great Singapore Sale (GSS).
June marks the start of the FIFA World Cup, with games being played around the evenings and late nights in Singapore. Viewers are likely to watch in the games in the comfort of their homes, or in restaurants or pubs.
RHB Research analyst Juliana Cai said that the sales of snacks, takeaway foods, as well as alcoholic and non-alcoholic beverages to rise, thereby giving a slight sales kick to supermarkets and convenience store operators like Sheng Siong and Dairy Farm.
“Do note however, that these are not high margin items for the grocery retailers,” she added.
Meanwhile, restaurants and fast food outlets that air football matches at their premises are likely to see a one-off surge in volumes. “Takeaway foods and food delivery services could benefit as well. foodpanda Singapore, for instance, advertises during the 15-minute half-time break,” Cai said.
The World Cup could be bad news, however, for full-service restaurants that do not air matches, which could lose out during these two months.
Separately, the brokerage said apparel, footwear, and department stores are the main categories that will benefit from the GSS. “We expect retail sales to pick up amidst the improved consumer sentiment,” Cai added.
Coupled with increased tourism activities and pent-up demand domestically, sales at both speciality stores and department stores could do well during these two months.
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