Retail sales in Singapore increased by 8.4% year-on-year in February, significantly outpacing January’s 1.6% growth. This surge was largely attributed to the Chinese New Year (CNY) festivities, which drove up consumer spending across various sectors. February’s total retail sales reached S$3.9 billion, with online sales contributing 10.9%, a slight dip from January.

Excluding motor vehicles, retail sales grew by 9.4%, showcasing strong demand across most categories. Food and alcohol emerged as the fastest-growing sector, with both local residents and foreign tourists contributing to the rise in sales. The CNY celebrations, held in February this year instead of January as in 2023, were a key factor in boosting consumer spending.

A surge in Chinese tourists also played a pivotal role in this growth. Following the reintroduction of the 30-day visa-free travel arrangement between Singapore and China on February 9, the country saw a marked increase in Chinese visitors. China became Singapore’s largest source of tourists in February, representing 22.7% of the 1.44 million visitors.

Out of the 14 retail categories tracked, 11 recorded year-on-year growth. Key contributors included furniture and household equipment, which saw a 16.6% increase, and food and alcohol, which experienced the most significant rise. On the flip side, some sectors saw a dip, with food and alcohol sales experiencing a sequential fall of 13.3% compared to January.

Sales in the food and beverage (F&B) sector also posted remarkable gains, with a 14.7% year-on-year increase, bouncing back from January’s 5.5% decline. Month-on-month, F&B sales rose by 7.9%, continuing the positive trend of 0.4% growth in January.

Restaurants and food caterers were the top performers, with sales rising by 20.5% and 39.5% respectively, followed by fast food outlets, which grew by 9%. Cafes, food courts, and other eateries also saw positive results, with a 5.2% increase.

Economists predict continued growth in Singapore’s retail sector, with factors such as tourism and consumer confidence expected to fuel further expansion throughout the year. February’s strong performance underscores the resilience and adaptability of the retail landscape in Singapore.