What: Singapore's retail sales grew 2.5% year on year in September on mobile phone and petrol demand but fell 1.8% from August, as haze kept shoppers away from physical stores.

Why it is important: September's decline in department stores follows a modest gain in August, so the segment's brief recovery did not hold.

Retail sales in Singapore, excluding motor vehicles, accelerated in September from the revised 1.7% growth in August, according to the Department of Statistics. Total sales were estimated at SG$3.6 billion (US$2.8 billion), of which 20.8% came from online.

Computer and telecommunications equipment retailers posted the strongest increase, mainly on higher mobile phone sales. Petrol service stations grew 6.5% as petrol prices rose. Cosmetics, toiletries and medical goods gained 6%, and furniture and household equipment 5.3%. Mini-marts and convenience stores fell 5.6%, and food and beverage services rose 1%, reversing August's decline.

Etoro market analyst Zavier Wong said haze was the likeliest reason for the drag, as September was the first time since 2019 that air quality turned unhealthy island-wide. Physical stores such as mini-marts, optical goods and books were most affected. The launch of Apple's new iPhones let the computer and telecom sector surpass that weakness, but he does not expect the bump to repeat in October.

Wong expects a similar pattern in October, with physical stores soft and online busy, as the haze lasted through much of the month. Last year's October and November both grew above 4%, leaving a high base for the annual rate.

IADS Notes: Department stores have lagged Singapore's retail growth this year. Inside Retail Asia, September 2026 reported a sixth decline in seven months for the segment in July, with online at 18.3% of sales. Inside Retail Asia, October 2026 showed department stores in a group of categories gaining 0.7–1.6% in August, when computer and telecommunications equipment rose 10.7% and online share was 18.2%. The pressure has reached store footprints: Inside Retail, July 2026 reported that Metro will close its Paragon and Causeway Point stores in favour of smaller multi-concept formats after a US$8.8 million net loss, while Inside Retail Asia, November 2026 described beauty brands taking large units at Tampines Mall a year after Isetan's closure, with rents edging up and e-commerce above 18% of retail sales. Petrol station sales have moved with pump prices, rising 14.4% in April according to Inside Retail, June 2026.

Higher smartphone sales, fuel prices lift Singapore retail sales in September