Singapore's retail sales experienced a 3% year-on-year increase in May 2026, extending the 5.4% growth recorded in April. However, this growth fell short of economists' expectations, which had anticipated a 6.5% rise. (, cosmetics, toiletries and medical goods (4.9%), optical goods and books (4.6%), furniture and household equipment (4.5%), mini-marts and convenience stores (1.4%), supermarkets and hypermarkets (1.1%), and wearing apparel and footwear (0.1%).
Conversely, food and beverage services experienced flat growth, with a 0% year-on-year increase. On a month-on-month, seasonally adjusted basis, food and beverage services declined by 0.6%. Within this category, fast-food outlets saw a 2.6% increase, food caterers 1.9%, and restaurants 1.8%. However, cafes experienced a 0.5% decline, and food courts and other eating places saw a 5.3% decrease.
Online retail sales accounted for an estimated 15.1% of total retail turnover in May, up from 14.7% in April.
The moderation in retail sales growth in May suggests a potential softening in consumer spending, which could have broader implications for Singapore's economic outlook. Analysts will be closely monitoring upcoming data to assess whether this trend continues in the following months.
In summary, while Singapore's retail sector continues to show growth, the pace has slowed compared to previous months, and the growth rate has not met economists' forecasts. This trend warrants attention as it may indicate changing consumer behavior and could impact the broader economy.