Supermarket sales jump in February as overall retail spending dives: Department of Statistics

SINGAPORE — Sales at supermarkets and hypermarkets shot up 15.5 per cent in February from the same month last year even though overall retail sales slid 8.6 per cent as Covid-19 hit tourism and domestic spending, the Singapore Department of Statistics said on Friday (April 3).

Two other types of retailers which did fairly well were furniture and household equipment, up 5.9 per cent year on year, and sales of petrol at service stations, which rose 3.9 per cent in February over the same month in 2019.

The February retail sales include a period of panic buying at supermarkets after Singapore lifted the Disease Outbreak Response System Condition (Dorscon) level from Yellow to Orange on Feb 7.

If a modest 1.3 per cent rise in motor vehicle sales is excluded, overall retail sales slumped 10.2 per cent in February.

Retailers which saw the biggest decline in sales were:

• Department stores: Sales sank by 36.3 per cent this February compared to last February and 23.8 per cent compared to January this year

• Food and alcohol: Sales dived by 40.5 per cent this February compared to last February and 16.8 per cent compared to January this year

• Apparel and footwear: Sales plummeted by 41.0 per cent this February compared to last February and 34.5 per cent compared to January this year

• Cosmetics, toiletries and medical goods: Sales fell by 13.3 per cent this February compared to last February and 24.4 per cent compared to January this year

• Watches and jewellery: Sales fell by 23.8 per cent this February compared to last February and 30.7 per cent compared to January this year

• Recreational goods: Sales tanked by 10.2 per cent this February compared to last February and 11.4 per cent compared to January this year

TODAY sought the views of economists, who expect further declines in the months ahead.

Ms Selena Ling, head of treasury research and strategy at OCBC bank, said: “With all the safe-distancing measures put in place and all travel restrictions going in and out of Singapore, the expectation is that the consumption story is going to get a lot worse. In the second quarter, from April onwards, the decline will be sharper.”

For the supermarkets and hypermarkets industry, Ms Ling said that people are just doing their best to “be prepared”.

“People are stocking up on basic essentials. When Malaysia announced their movement control order, and generally with more and more of these city and country lockdowns happening, people are doing their best to prepare if safe-distancing measures in Singapore get more extreme. Perhaps some future measures might require staying at home,” she said.

She also added that while the Government has given the reassurance that there are enough supplies, prices of groceries have been adjusted to meet demand.

“People don’t go out to eat at restaurants, they stay home to cook, so that’s probably why they need more groceries, too,” she said.

Mr Alvin Liew, an economist with United Overseas Bank, agreed that numbers will decline even more in the second quarter, due to the travel restrictions that have been put in place.

“Even though there was an increase in some industries such as supermarkets, it can’t make up for the loss of retail sales that’s attributed to tourism,” he said.

“March is probably the month where our tourist numbers have decreased by more than 50 per cent. That itself will be a big negative impact on retail sales going forward,” he added.

“You have to be pragmatic that we’re not sure when all these travel restrictions and safe-distancing measures will be lifted. The retail sales segment will be under quite a bit of stress in the second quarter,” he said.

Mr Liew added that the increase in sales of furniture and household equipment could be related to many people now working from home. As a result, people could have bought study tables or furniture to create a more conducive work environment in their homes.

Mr Song Seng Wun, an economist at CIMB Private Banking, said that while numbers will decline in the coming months, an increase of online sales will be observed.

“The initial impact of the virus outbreak in February has caused these numbers. Going forward, I don’t think Singapore will be any different from any other countries in terms of being reminded of not going out unnecessarily. Consumer behaviour has shifted and online purchases will take a greater share of total retail sales as people avoid unnecessary trips outside,” he said.