Retail sales drop in Q3, overseas spending to amplify decline: Savills

High prices in Singapore and strong SGD may prompt consumers to spend overseas.

Retail sales, excluding motor vehicles, declined in July and August as overall sales remained weak, Savills reported.

Retail sales fell in most categories except for food and alcohol and supermarkets and hypermarkets. Overall, F&B sales also declined, with only food catering services showing growth.

In Q3 2024, sales in Singapore’s wholesale and retail trade, as well as transportation and storage sectors, rose by 3.5%. The accommodation sector is also improving as tourism continues to recover.

On the flip side, sales weakened in categories such as wearing apparel and footwear, watches and jewelry, and department stores. The food services sector also remains sluggish.

Savills noted that high prices in Singapore, along with a strong currency, may lead consumers to spend overseas, which could further slow domestic sales.