Retail sales report first contraction since Feb 2011

And yet just another reason to believe that Singapore's now in technical recession.

According to Savills Research, retail sales eased 0.7% year-on- year (YoY) in July, marking the first contraction since February 2011.

Anchor tenants and big-format stores have taken centre stage again, it said, creating spin-off demands under a
challenging retail climate, while the Southeast Asian growth story remained a pull factor for international retailers.

Malls in Jurong Gateway exhibited innovative asset enhancements to stay ahead of competition; while JCube is a hotspot for new retail brands and concepts, IMM will be Singapore’s largest outlet destination

Savills estimates that monthly prime suburban rents held firm at S$31.1 per sq ft while those on Orchard Road softened 0.8% to S$35.2 per sq ft.

Here's more from Savills:

Macroeconomic overview

The prolonged eurozone crisis, deceleration of the China and India economies, and strengthening of the Singapore dollar have taken a toll on the retail market. Despite the Great Singapore Sales, retail sales (excluding motor vehicles) failed to take-off, having eased 0.7% YoY in July, the first contraction since February 2011.
The watch and jewellery segment has been in a slump since May, although necessities expenditure, such as supermarkets, remained healthy, which could partly be attributed to Singapore’s expanding population.

Southeast Asia continued to be a bright spot, bucking the deceleration trend that plagues many nations. According to the International Monetary Fund, the ASEAN-51 economy is projected to grow 5.4% this year, up from 2011’s 4.5%. The Singapore brand as an investment destination2 makes it well-positioned to ride on this growth. Meanwhile, hefty government spending in areas such as housing, tourism and transport have sustained employment and helped to avert a hard landing. In its latest forecast, the Ministry of Trade and Industry estimated that the Singapore economy will expand by 1.5% to 2.5% this year.

Also Read

Changi Airports and Hainan Meilan form JV for non-aero services

F&B brands remain key drivers of retail leasing in Q3

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit