Singapore’s retail sales experienced a significant slowdown in July, increasing by just 1.5% year-on-year, according to Josh Gilbert, Lead Analyst for APAC at etoro. This figure fell short of the anticipated 3.1% growth, with some distortion attributed to last year’s SG60 vouchers. Categories such as supermarkets, mini-marts, and food and alcohol saw declines, as these were the areas where vouchers were predominantly spent in July 2025.
Despite the overall slowdown, certain sectors showed resilience. Recreational goods saw a 13.9% increase, whilst watches and jewellery experienced an 11.1% rise, marking the third consecutive month of double-digit growth. Gilbert noted, “It’s a fascinating snapshot of how households are coping with higher living costs.”
The data highlights a shift in consumer spending patterns amidst rising living costs. Whilst routine spending has become more cautious due to elevated prices, there remains a strong appetite for discretionary purchases. This trend underscores a growing wealth divide, with affluent households benefiting from record highs in the STI and US stocks, as well as a 20% increase in gold prices over the past year.
Fuel sales, which previously grew by 8% in June, declined by 1.1% in July, reflecting easing pump prices. However, with recent spikes in oil prices, volatility in this sector is expected to persist.
Gilbert concluded, “Singaporeans are still spending, they’ve just decided that if the money’s going out the door, it had better be on something memorable.” This shift suggests that retailers catering to affluent consumers are thriving, whilst those targeting the broader market face challenges.
