Singapore Retail Market Report and Forecast 2024-2032

Singapore Retail Market Size

The retail market in Singapore reached USD 36.25 billion in 2023. The market is expected to grow at a CAGR of 3.70% between 2024 and 2032, reaching USD 50.27 billion by 2032.

Singapore Retail Market Outlook

• As per the World Bank, as of 2022, the final consumption expenditure of Singapore was over USD 186 billion.

• As per the Economic Development Board in Singapore, till 2030, the annual disposable income is expected to grow at 5.3% CAGR which can boost the demand of Singapore retail market.

• As per the Singapore Department of Statistics, total retail sales in February 2024 were worth USD 3.9 billion.

Singapore Retail Market Growth

The market growth is led by supermarkets and hypermarkets as more traditional forms of distribution channels.

In Singapore, supermarkets and hypermarkets are typically retail stores that offer various products in the same place, ranging from foods, beverages, personal household care products, and consumer electronics and boost the growth of the Singapore retail market. Consumers appreciate the convenience of one-stop shopping, competitive pricing, and promotions offered by supermarkets and hypermarkets. Retailers like supermarkets also prioritize superior customer service and provide services like loyalty programs and home delivery.

Singapore Retail Market Trends

The retail market within the country is likely to see growth due to rising consumption expenditure, and the capacity of Singapore citizens to spend more owing to a rising annual disposable income. As of August 2023, Singapore-based tech group ‘Sea’, ramped up investments in Shopee, its online shopping business, in a bid to compete with online shopping service TikTok Shop launched in 2021.

Online platforms have seen tremendous growth in Singapore’s online retail sector, which is a key trend in Singapore retail market. Therefore, this explains why online shopping, which is easy to access and allows for price comparisons, has become popular among young people. The COVID-19 pandemic also accelerated the adoption of online shopping with the inception of online platforms like Shopee and TikTok Shop.

Recent Developments

As per the Singapore retail market dynamics and trends, Hunter Boots, a British footwear brand, announced the launch of its physical store in Southeast Asia in Singapore in July 2024. The brand has also opened its websites in Singapore and Malaysia as it aims to enhance its market reach in the Southeast Asian region.

Industry Outlook

According to the Singapore retail industry analysis, on a year-on-year basis, retail sales witnessed a growth rate of 1.6% in January 2024 followed by an 8.4% increase in February 2024. The total retail sales in February 2024 were USD 3.9 billion, and around 10.9% of this was from online retail sales which was less than the 11.0% online retail sales in January. Supermarkets and hypermarkets witnessed a growth of around 19.2% in February 2024. The sales of food and alcohol witnessed a surge of 31.4%, whereas watches and jewellery witnessed a growth of 16.8%. On the other hand, on a month-on-month basis, furniture and household equipment, witnessed a growth of 16.6%, whereas computer and telecommunications equipment saw a growth of 11.4% in February 2024.

As per the industry reports, Retail sales in Singapore witnessed a fall of 0.6% year-on-year in June 2024, whereas it witnessed a growth of 2.2% in May 2024. The total retail sales for June 2024 was USD 3.8 billion, out of which around 12.1% was online retail sales. Computer and telecommunications equipment, furniture and household equipment, and supermarkets and hypermarkets constituted around 49.0%, 32.7%, and 12.5% of the total online retail sales, which contributed to the growth of the Singapore retail industry.

As per the Bloomberg data, around 7 million visitors come to shop in the luxury shopping area of Orchard Road which consists of exclusive restaurants, and Hermès and Dior stores, every year. This surge in luxury shopping in the country is further expected to contribute to the Singapore retail industry revenue.

Factors Contributing to the Growth of the Singapore Market Driven by Economic Stability and Tourist Influx

• Large Domestic Market: Singapore's strong and stable economy supports robust consumer spending.

• Tourist Influx: High levels of tourism drive retail sales, particularly in luxury goods and souvenirs and boost Singapore retail demand.

• High Disposable Income: A significant portion of the population has high disposable income, boosting demand for premium and luxury products.

• Advanced Infrastructure: Modern and well-developed infrastructure supports efficient retail operations and consumer accessibility.

Challenges Impacting the Growth of the Singapore Market Include High Operating Costs and Intense Competition

• High Operating Costs: Elevated costs of rent, labour, and utilities increase the overall operational expenses for retailers.

• Intense Competition: The market is highly competitive, with numerous local and international brands vying for consumer attention and affecting Singapore retail demand forecast.

• Changing Consumer Preferences: Rapidly shifting consumer preferences and trends require constant adaptation and innovation by retailers.

• Regulatory Compliance: Adhering to stringent regulations and compliance requirements can be challenging and costly for businesses.

Opportunities in the Singapore Market Driven by E-commerce Growth and Sustainable Practices

• E-commerce Expansion: The growing adoption of online shopping enhances market reach for retailers.

• Sustainable Practices: Increasing consumer awareness of sustainability creates Singapore retail market opportunities for retailers to offer eco-friendly products and practices.

• Technological Innovations: The rising usage of AI, AR, and big data can enhance customer experiences and operational efficiency.

• Health and Wellness Trends: Rising health consciousness drives demand for health and wellness products.

• Personalization and Customization: Offering personalized shopping experiences and customizable products can attract more customers.

• Fashion and Lifestyle Trends: Trends in fashion, lifestyle, and consumer preferences shape demand for various retail products and boost Singapore retail demand growth.

Key Price Indicators of the Singapore Market

• Rental Costs: High rental costs in prime locations significantly influence the pricing strategies of retailers.

• Technological Investment: Investment in technology and digital infrastructure affects operational costs and pricing. 

• Labor Costs: Wages and employee benefits impact the overall cost structure of retail operations.

• Utility Costs: Electricity, water, and other utility costs contribute to operational expenses and can impact Singapore retail market revenue.

• Import Tariffs and Duties: Import tariffs and duties on goods affect the final pricing of products.

• Logistics and Distribution Costs: Costs associated with transportation, warehousing, and distribution impact retail prices.

• Marketing and Advertising Costs: Expenditures on marketing and advertising campaigns influence product pricing and profitability.

Setbacks Faced by the Singapore Market Due to Economic Uncertainty and External Shocks

• Economic Uncertainty: Global economic uncertainties and fluctuations can impact consumer spending and retail performance.

• Cybersecurity Risks: The increasing reliance on digital platforms raises concerns about cybersecurity and data privacy.

• External Shocks: Events such as pandemics, natural disasters, or geopolitical tensions can affect the retail market.

• Real Estate Constraints: Less space for retail developments can restrict market expansion and growth.

• Consumer Debt Levels: High levels of consumer debt can affect disposable income and spending on retail products, further affecting Singapore retail market value.

Singapore Retail Industry Segmentations

Singapore Retail Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Product

• Food, Beverage, and Grocery

• Personal and Household Care

• Apparel, Footwear, and Accessories

• Furniture and Home Décor

• Electronic and Household Appliances

• Others

Market Breakup by Distribution Channel

• Supermarkets and Hypermarkets

• Convenience Stores

• Specialty Stores

• Online

• Others

Singapore Retail Market Share

Food, beverage, and grocery entails a wide range of consumable goods, including fresh and packaged food in the retail market within the country. Personal and household care which encompass a wide array of products designed for personal hygiene and grooming which cater to everyday needs and preferences are also leading growth in Singapore retail industry.

Competitive Landscape

Major market players are expanding their outreach through investments in sustainability and ethical consumption along with a focus on health and wellness. Digital infrastructure and technological innovation through contactless payments and cashless transactions also help with improved customer experience.

• CK Hutchison Holdings Limited (Watsons)

• Japan Foods Holding Ltd.

• Alibaba Group Holding Ltd. (Redmart)

• DFI Retail Group Holdings Limited

• Sheng Siong Group Ltd.

• Crayon Holdings Pte Ltd.

• NTUC FairPrice Co-operative Limited

• QAF Ltd.

• Stars Supermarket Pte Ltd.

• Amnesty Pte Ltd.

• Others

Key Highlights of the Report

Singapore Retail Market Report Snapshots

Singapore Retail Market Size

Singapore Retail Market Growth

Singapore Retail Market Trends

Singapore Retail Market Share

Singapore Retail Companies