What: Singapore's retail sales declined 6.7% in February 2025, primarily due to Chinese New Year timing shift, with online channels maintaining 14.6% market share.

Why it is important: The contrast between January's growth and February's decline highlights the significant impact of seasonal events on Asian retail markets, particularly in the post-pandemic landscape.

Singapore's retail sector experienced a 6.7% year-on-year decline in February 2025, with total sales reaching SG$3.2 billion. This downturn, primarily attributed to the timing difference of Chinese New Year celebrations, reveals significant variations across retail categories. The wearing apparel and footwear sector faced the steepest decline at 18.4%, while department stores and supermarkets experienced substantial decreases of 14.6% and 13.3% respectively. However, some sectors demonstrated resilience, with optical goods and books achieving 6.4% growth. Digital commerce maintained its strong presence, accounting for 14.6% of total retail value, reflecting the ongoing transformation of Singapore's retail landscape. The food and beverage sector also showed sensitivity to the holiday timing shift, recording a 5.6% decrease compared to the previous year's festive period.

IADS Notes: The February 2025 retail performance in Singapore should be viewed within the broader context of regional retail dynamics. As observed in January 2025, Singapore achieved 4.8% retail growth due to the early Chinese New Year, contrasting with Hong Kong's continued challenges where sales declined by 13%. This performance aligns with the wider Asian retail transformation, where digital innovation and changing consumer behaviours are reshaping traditional retail patterns. The robust online sales contribution of 14.6% mirrors similar trends across the region, with China projecting significant digital commerce growth. These shifts suggest a fundamental transformation in Asian retail, where seasonal events' impact is increasingly moderated by evolving consumer preferences and digital adoption.

Singapore retail sales plunge 6.7% in February