Analysts keep a bright outlook for retail 

RHB sees retail sales rising 2% YoY in 2024.

Singapore’s retail sector will continue to perform well for the rest of the year largely thanks to an improving external environment and a strong lineup of major events, according to research analyst.

In a recent note, RHB stressed that they remain optimistic about the retail sales growth for the second half of 2024 after sales rebounded with a 2.2% YoY increase in May from the 1.2% dip in April.

RHB said they expect wholesale and retail sectors to grow 1.8% and 2.2% in 1H24
and 2H24, respectively, leading to an estimated full-year growth of 2% YoY for 2024.

Supporting last month’s rebound were strong motor vehicle sales, as well as higher sales in food, alcohol, watches, cosmetics and wearing apparel, according to a separate note by UOB.

UOB said upcoming major events such as Formula 1 Singapore Grand Prix 2024 in September could provide a boost to retail sales. 

Further fueling consumer spending are government programmes like the B2024 Cost-of-Living Special Payment and the GSTV - Cash.

RHB also highlighted the retail sector’s resiliency after tourist arrivals in the second quarter eased from the tourism boom in the first quarter. 

It expects tourism to bounce back in the months ahead, boosting consumer spending and driving retail sales.