S’pore retail sales up 1.7% in September, led by demand for mobile phones, higher petrol prices

SINGAPORE – Singapore’s retail sales rose 1.7% year on year in September, extending August’s 0.8% growth, according to data from the Singapore Department of Statistics (SingStat).

In a release on Nov 5, SingStat said retail sales – excluding motor vehicles, parts and accessories sales – increased 2.5% compared with 1.7% growth in August 2026.

On a month-on-month and seasonally adjusted basis, retail sales declined 1% in September over the previous month. Excluding motor vehicles, parts and accessories, sales decreased 1.8% compared with August.

Total retail sales were estimated at $4.3 billion in September, with online transactions accounting for 17.7% of the total, up from 15.6% in August.

Within the retail trade sector, only six out of 14 industries saw a growth in sales. Retailers of computer and telecommunications equipment recorded year-on-year sales growth of 16.5%, while petrol service stations saw sales expand by 6.5%. This was mainly due to stronger demand for mobile phones and higher petrol prices. Sales of cosmetics, toiletries and medical goods also rose, by 6%.

A pick-up in sales at petrol service stations illustrated this price-driven increase, as a renewed rise in global energy prices fed through to higher domestic pump prices, increasing costs for consumers, said DBS Bank senior economist Chua Han Teng. “Looking ahead to the October data, sales of medical goods may have received support from increased demand for masks due to severe transboundary haze,” he said.

In contrast, minimarts and convenience stores recorded a decrease in sales of 5.6%, while department store sales dipped 3.4% in September.

The SingStat data also showed food and beverage services sales inching up 1% in September on a year-on-year basis, reversing August’s 1.8% fall.

On a seasonally adjusted basis, sales of F&B services rose 0.8% in September compared with the previous month. The total sales value of F&B services in September was estimated at $1.6 billion. Of this, an estimated 21.1% was from online sales, compared with 20.9% recorded in August.

Within the F&B services sector, fast-food outlets recorded a year-on-year growth of 7.6%, while restaurants grew by 2.6% in September. Cafes edged up 0.1%. In contrast, the turnover of food caterers declined by 0.2%, while foodcourts and other eating places fell by 4.2% in September.

Retail and F&B sales recovered slightly in September but remain relatively soft compared with most other sectors of the economy, said Maybank economist Chua Hak Bin.

The haze was likely a factor affecting September retail sales, which grew for the eighth consecutive month, said Selena Ling, chief economist and head of OCBC Group Research. The impact of the hazy conditions could have curbed some outdoor activities and shifted some consumption online as reflected in the higher proportion of online sales from 15.7% of total sales in August to 17.7% in September 2026.

A softer labour market with rising retrenchments, a strong Singdollar and higher costs of living may be dampening retail and F&B spending, Maybank’s Chua said, adding: “The F1 race and busier concert calendar in the fourth quarter might bring some boost and relief to the hospitality, retail and F&B sectors.”

The next disbursement of $300 CDC vouchers for Singaporean households in January could also help lift F&B and supermarket sales in early 2027, he noted.

Stable, albeit mixed, labour market conditions should also provide modest support, said DBS’ Chua. “Nevertheless, firm inflation is likely to erode consumers’ purchasing power somewhat, keeping households cautious and selective in their discretionary spending, limiting retail sales growth.”