What: Singapore's retail sector achieved modest 0.4% growth in June 2025, marked by strong performance in technology categories and continued digital channel penetration at 16.2%.

Why it is important: This performance demonstrates the ongoing evolution of Singapore's retail landscape, where sector-specific growth and steady online penetration rates indicate a mature market balancing digital and physical retail channels.

Singapore's retail sector demonstrated resilience in June 2025, posting a 0.4% year-on-year increase following flat growth in May. The total retail sales value reached SG$3.3 billion, with digital commerce maintaining a significant 16.2% share of overall sales. Performance varied significantly across sectors, with computer and telecommunications equipment leading at 7.3% growth, followed by optical goods and books at 5.9%, and recreational goods at 5.6%. Traditional retail categories such as watches and jewellery, cosmetics, and household equipment showed moderate growth between 1.3% and 5.5%. However, some sectors faced challenges, with petrol service stations and food & alcohol retailers experiencing declines of 5.9% and 5.2% respectively. The food and beverage sector demonstrated minimal growth of 0.1%, reaching SG$962 million, driven by increased sales from food caterers and fast food outlets, while restaurants and cafes saw declining performance.

IADS Notes: Singapore's June 2025 retail performance of 0.4% growth should be viewed within the context of the market's evolving dynamics throughout 2024-2025. While modest, this growth marks an improvement from May 2025's flat performance and demonstrates greater resilience compared to Hong Kong's continued challenges. The 16.2% online penetration rate aligns with the steady digital commerce share observed since December 2024, when it reached 15.4%. The sector-specific performance, particularly the 7.3% growth in computer and telecommunications equipment, continues a trend identified in May 2025, where technological categories consistently outperformed traditional retail segments. The food and beverage sector's minimal growth of 0.1% reflects an ongoing pattern of modest performance, following similar trends in March 2025 where the sector showed sensitivity to changing consumer preferences. These patterns reinforce Singapore's position as a key regional retail hub, albeit one facing significant cross-border competition and evolving consumer behaviours.

Singapore retail sales inch up 0.4 per cent in June