S’pore retail sales rose 2.7% in March, boosted by higher food and beverage spending and Taylor Swift concerts

SINGAPORE – Retail sales in Singapore rose for the third month in a row, boosted by Taylor Swift’s Eras Tour performances in March, but there are concerns that the trend could weaken in the coming months.

Cash receipts rose 2.7 percent in March from the same period a year earlier, slowing from a revised 8.6 percent rise in February, Department of Statistics data showed on May 3.

Excluding motor vehicles, retail sales grew 2 percent, extending the 9.5 percent increase in February. Ten of the 14 categories experienced an increase in their turnover.

Oxford Economics economist Sheana Yue said the March data added to broader evidence that the retail sector recovered early in the year, with sales growing 1.3 percent quarter-on-quarter in the first quarter. compared to a 0.3 percent contraction in the quarter. quarter of 2023.

She attributed the recovery to the return of tourists from mainland China after a visa-free travel agreement began in February, and to regional tourists coming here to attend concerts.

However, on a month-over-month and seasonally adjusted basis, retail sales fell 1 percent from February.

Liu Yun, HSBC’s Asean economist, said the 1 percent drop was a one-off correction from the Chinese New Year holiday in February, when people shopped more for the holiday.

He added that March figures point to widespread improvements, largely due to intense music tourism programming. “Not only did the food and beverage (F&B) sector continue to expand by double-digit percentage points, so did discretionary goods.”

The largest month-on-month increase was recorded in food and alcohol (15.1 percent), followed by cosmetics, toiletries and medical products (8.8 percent) and sales in department stores (7.7 percent).

Sales fell month over month in other industries, with the biggest declines coming from big-ticket items such as computer and telecommunications equipment (minus 8.5 percent), as well as furniture and household equipment (minus 7.9 percent).

UOB senior economist Alvin Liew and associate economist Jester Koh said the March data was “slightly disappointing”, probably due to a drop in Chinese tourist arrivals.

“In addition, we have observed seasonally adjusted monthly declines in several components that may reflect the drop in demand after the festive season and could be temporary,” the UOB economists added.

The total estimated value of retail sales in March amounted to $4.2 billion. Of this amount, around 11.7 percent came from online sales, up from 10.8 percent in February.

Excluding motor vehicles, total retail revenue amounted to about $3.5 billion, of which 13.9 percent came from online sales.