What: Singapore achieves 4.8% retail growth in January 2025, with online sales reaching 13.3% of SG USD 4 billion total revenue, demonstrating successful digital integration alongside traditional retail strength.

Why it is important: The balanced growth across both digital and physical retail channels, combined with strong sector-specific performance, positions Singapore as a model for successful retail transformation in Asia.

Singapore's retail sector demonstrated remarkable resilience in January 2025, achieving a 4.8% year-on-year growth following December's 4% decline. This recovery was particularly evident in the watches and jewellery category, which led sector performance with a 16.3% increase. The timing of Chinese New Year significantly influenced this positive trend, contributing to strong performances across food and alcohol, cosmetics, toiletries, and medical goods sectors, which all recorded growth between 11% and 11.6%. The digital transformation of Singapore's retail landscape continues to progress, with online sales accounting for 13.3% of the total SG USD 4 billion revenue. Food and beverage services showed exceptional strength, posting a 10.4% increase following December's modest 0.8% growth. However, some sectors faced challenges, with petrol service stations and computer and telecommunications equipment experiencing declines of 5.4% and 4.4% respectively. This varied performance across sectors reflects the evolving nature of Singapore's retail landscape and its successful adaptation to changing consumer preferences.

IADS Notes: Singapore's January 2025 retail performance marks a significant shift in regional retail dynamics. As noted in February 2025, this growth contrasts sharply with the 4% decline seen in December, demonstrating the market's resilience. The strong performance in watches and jewellery aligns with findings from May 2024 that highlighted Singapore's emerging role as a key regional retail hub. This success is particularly notable when compared to Hong Kong's January performance, where sales declined by 3.2% despite similar seasonal factors. The robust online sales contribution reflects Singapore's successful digital transformation, while the growth across multiple sectors indicates effective adaptation to evolving consumer preferences and shopping patterns.

Singapore retail sales grow in January as Chinese New Year comes early