Retail sales decline shows end of revenge spending in holidays

Transactions went down 18.7% to $3.1b in February.

Consumers’ conservative behaviour due to inflation has affected non-discretionary spending in February 2023, Knight Frank said.

“Despite the increase in visitor numbers and overall optimism in the retail sector, retail sales (excluding motor vehicles) in February 2023 declined 18.7% to $3.1b from the $3.8b in January, and 27.4% from the $4.3b in December 2022,” said Knight Frank.

But retail sales volume remained higher than pandemic levels and slightly higher than pre-pandemic levels in February 2019. 

Despite the decline in spending, the property firm said gravitation towards experiential retail and lifestyle, with increasing popularity for health, beauty, and wellness services. 

There is also an influx of private wealth that has driven economic growth and prosperity, and the retail industry has seen an influx of international luxury brands and food and beverage chains expanding to Singapore, including Sasa, Giuseppe Zanotti, and Tim Hortons.