What: Singapore's December retail performance shows divergent sector trends, with overall sales dropping 4% year-on-year and online channels accounting for 15.4% of the SG USD 4 billion total sales value.

Why it is important: The divergent sector performance highlights the increasing polarisation between essential and discretionary retail categories, while the substantial online share demonstrates the acceleration of digital adoption in Singapore's retail market.

Singapore's retail sector experienced a notable downturn in December 2024, with sales declining 4% year-on-year, extending November's negative trend. The total retail sales value reached SG USD 4 billion, with digital commerce representing a significant 15.4% share, indicating the growing importance of online channels. The performance varied significantly across sectors, with computer and telecommunications equipment experiencing the steepest decline at 13.1%, followed by minimarts and convenience stores at 9.3%, and wearing apparel and footwear at 6.7%. In contrast, food and alcohol categories showed resilience with a 9.4% growth, while cosmetics, toiletries, and medical goods increased by 2.2%. The food and beverage services sector maintained positive momentum with a 1% growth, though this marked a slowdown from November's 4% increase. The sector's total sales value of SG USD 1 billion included a substantial 24.8% contribution from online channels, further emphasising the shift toward digital consumption.

IADS Notes: Singapore's December retail decline reflects broader regional challenges identified throughout 2024. As noted in September 2024, retailers were already struggling with rising operational costs against stagnant sales, particularly affecting brick-and-mortar operations. The current 4% decline in retail sales, despite 15.4% online penetration, aligns with findings from May 2024 that highlighted Singapore's potential as a regional retail hub, albeit one facing significant cross-border competition for local shoppers. January 2025 research on Asia-Pacific consumer sentiment further contextualises these challenges, emphasising how market-specific trends and omnichannel adoption are reshaping shopping behaviours across the region. The contrasting performance between sectors - with food and alcohol showing growth while electronics and fashion decline - demonstrates the ongoing transformation of retail dynamics in Singapore's market.

Singapore retail sales decline extends in December