Singapore: Prospects for retail sales remain solid despite February drop

“Singapore’s retail sales unexpectedly contracted 3.4% y/y in Feb 2022, disappointing market estimates for a 5.6% y/y expansion. Retail sales excluding motor vehicles fell 1.8% y/y in the same month.”

“The decline in retail sales was partly due to lower receipts as compared to Feb 2021, during which sales were supported by pre-Chinese New Year (CNY) expenditure. For this year, pre-CNY spending occurred mainly in Jan 2022.”

“For the year ahead, we expect that domestic retailers will likely see some support as borders continue to reopen, while further economic recovery would be a lynchpin for domestic retail demand. Barring the exacerbation of COVID-19-related risks in Singapore and around the region, we pencil retail sales to expand by 6.0% in 2022.”

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