Losing the touch: Great Singapore Sale failed to boost retail sales in June

Jewelry sales dropped by 7%.

The country’s biggest shopping event did not live up to its hype this year, as the country remained burdened with declining tourist arrivals and weakening GDP growth.

Data released today by the Department of Statistics showed that sales of watches and jewellery fell for the fourth consecutive month in July, as retailers registered a 3.5% month-on-month drop in sales.

This reflects a 7.0% year-on-year drop. According to Savills, sales in this segment are important because they are indicators of discretionary expenditure.

“Despite the Great Singapore Sale (GSS), held from 30 May to 27 July, retailers have reported that they do not expect their sales to surpass that of GSS 2013,” noted Savills.

Here’s more from Savills:

Singapore’s economy and tourist arrivals weakened in Q2/2014. The Republic’s GDP growth dropped from 4.7% to 2.1% in the second quarter.

International visitor arrivals also declined 1.7% year-on-year (YoY) to 6.3 million in the first five months of the year, mainly due to the recent woes stemming from the unresolved MH370 incident, Thailand’s political uncertainties and China’s legislation on overseas tour packages.

Retail sales in Q2/2014 have also been slower than the previous year. Excluding motor vehicles, retail sales grew by a marginal 0.1% YoY in May, after shedding 1.4% in April.

Sales of watches and jewellery – an indicator of discretionary expenditure – continued its sluggish performance for the fourth consecutive month with a 6.6% YoY drop.