What: Singapore retail sales recover with 0.7% year-on-year growth in March, led by watches and jewellery sector's 13.5% increase, while online sales maintain 16% market share.

Why it is important: The recovery signals Singapore's resilience as a regional retail hub, with the contrasting performance across sectors highlighting evolving consumer preferences and the growing importance of digital commerce.

Singapore's retail sector demonstrated resilience in March 2025, posting a 0.7% year-on-year growth and reversing February's steep 6.5% decline. The total retail value reached SG$3.6 billion, with online channels contributing a significant 16% share. Performance varied significantly across sectors, with watches and jewellery leading the recovery at 13.5% growth, followed by cosmetics, toiletries and medical goods at 3.6%, and supermarkets and hypermarkets at 3.4%. However, challenges persisted in certain categories, with petrol service stations and wearing apparel experiencing declines of 8.2% and 8% respectively. The food and beverage sector continued to face headwinds, with sales falling 2.8% in March, extending February's 5.7% decrease. Despite these challenges, the total F&B value reached SG$960 million, with digital platforms accounting for 24.9% of sales, highlighting the ongoing importance of online channels in Singapore's retail landscape.

IADS Notes: Singapore's March 2025 retail performance reflects broader shifts in the regional retail landscape. The 0.7% year-on-year growth, reversing February's 6.5% decline, demonstrates the market's resilience amid changing consumer behavior. This recovery contrasts with Hong Kong's continued challenges, where March sales fell 3.5% despite increased visitor numbers. The varied sector performance, led by watches and jewellery's 13.5% growth, mirrors January 2025's pattern when Chinese New Year drove selective category growth. Digital commerce maintains a steady presence, with online sales consistently representing 14-16% of total retail value throughout early 2025. The contrasting performance between essential and discretionary categories, particularly the 2.8% decline in food and beverage services, suggests evolving consumer priorities in a market that continues to position itself as a key regional retail hub, as noted in December 2024 analysis.

Singapore retail sales rebound in March