SELLERS of cars and IT products were among the few retailers who had a good month in January, with takings in almost all other retail segments declining compared with last year.
This was partly due to higher sales recorded in January last year when Chinese New Year fell in that month.
Overall retail sales fell 5 per cent compared with January 2014, according the Statistics Department yesterday.
If car sales are stripped out to give a better indicator of underlying consumer demand, sales were down 8.7 per cent - a trend which persisted during much of 2014 and looks set to
continue.
The auto market has been getting a lift from buyers who bought between 2004 and 2008 when the supply of certificates of entitlement was high and are now looking to replace their vehicles.
Other retailers fared less well.
Food and beverage sales plunged 42.1 per cent in January compared with the same month last year, mainly due to higher sales a year ago for Chinese New Year.
Takings at petrol service stations declined 27.5 per cent, partly due to lower petrol prices.
After removing the price effect, the revenue of petrol service stations fell by a smaller 11.3 per cent.
Sales of recreational goods, supermarkets, wearing apparel and footwear, department stores, medical goods and toiletries, and mini-marts and convenience stores also declined between 7 per cent and 15.6 per cent compared with last January.
Retail sales of furniture and household equipment remained unchanged.
Sentiment in the industry has been poor, given the slowdown in both tourist arrivals and consumer spending.
Tourist arrivals fell 3.1 per cent to 15.1 million last year, missing the targeted 17 million visitors. Tourists also spent less than expected - $23.5 billion last year, compared with the targeted $30 billion.
Mr Patrick Yong, the founder of bag retailer Leonistar, hopes sales will pick up in the second half of the year.
"This year has been relatively slower for us so far because more shopping malls are coming up, especially in the east," said Mr Yong, who started the company in 2010.
It has two outlets - one at Changi Airport and another at nex shopping mall in Serangoon. The outlet at nex will close at the end of May when its lease runs out.
This article was first published on Mar 14, 2015.
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