Retail Sales Trends and Sector Performance
Singapore's retail market demonstrated resilience in 2026, though growth remains uneven across different categories [9]. As of July 2026, retail sales rose 1.9% year-to-date [9]. Specifically, in August 2026, total retail sales were estimated at $4.5 billion, representing a 0.7% year-on-year increase [10]. When excluding motor vehicles, parts, and accessories, August sales rose 1.6% year-on-year, an increase over the 1.3% growth recorded in July [10].
High-Growth Categories
Certain sectors have significantly outperformed the broader market. In August 2026, cosmetics, toiletries, and medical goods experienced the strongest year-on-year growth at 11.2% [10]. The computer and telecommunications equipment industry followed closely with a 10.7% increase, largely driven by higher mobile phone sales [10]. This aligns with Q3 2026 data showing computer and telecommunications equipment growth at 9.2% [9]. Additionally, recreational goods sales rose 4.3% and petrol service stations climbed 3.2% in August [10].
Declining Sectors
Conversely, some sectors have faced steep declines. Department stores posted the steepest decline at -3.7% in Q3 2026 [9]. In August 2026, motor vehicles, parts, and accessories saw a year-on-year decline of 4.6%, and watches and jewellery sales dipped by 2.7% [10].
Food and Beverage (F&B) Shifts
The F&B sector has faced more significant challenges than general retail. Total F&B sales in August 2026 were estimated at $1.7 billion, a 1.6% year-on-year decrease [10]. This followed a 1.9% decline in July [10].
- Cafes: Experienced the largest drop with a 5.3% year-on-year sales decrease [10].
- Foodcourts and other eating places: Sales fell by 4.8% year-on-year [10].
- Restaurants: Sales decreased by 2.1% [10].
- Fast-food outlets: Contrasted the trend with a 7.8% increase in sales [10].
- Food caterers: Sales increased by 2.9% [10].
Despite these declines, new concepts continue to enter the market in October 2026. TOFU G, Singapore's first tofu-based gelato brand, opened two new outlets at Suntec City and Waterway Point, offering gelato for $8 with unlimited toppings for an additional $2 [8]. Other new openings include The CHOYA Ginza BAR at Millenia Walk and KOKO Kawane at The Star Vista [8].
Real Estate and Rental Dynamics
Prime retail rents rose across all submarkets in Q3 2026 [9]. Other City Areas saw the highest growth at 0.7% quarter-on-quarter, supported by a diverse catchment of tourists, commuters, and office workers [9]. Prime rents in both Orchard and suburban locations rose by 0.3% quarter-on-quarter [9].
Suburban retail remains resilient, evidenced by the backfilling of anchor space at Tampines Mall by brands including Dior Beauty, Sephora, Paris Baguette, and Casa Vostra [9]. While business closures continue, net business formation in retail and F&B remained positive with 992 entities as of August 2026, according to ACRA [9].
Future Supply Outlook
Future growth is expected to be supported by a constrained pipeline [9]. Between 2027 and 2031, retail completions are projected to average 0.6 million square feet (msf) annually, which is lower than the 0.7 msf annual average delivered between 2017 and 2026 [9]. Upcoming completions are concentrated in suburban locations (54%), Other City Areas (42%), and Orchard Road (4%) [9].
| Metric | Value | Period/Source |
|---|---|---|
| Total Retail Sales (August) | $4.5 billion [10] | August 2026 |
| Total F&B Sales (August) | $1.7 billion [10] | August 2026 |
| Cosmetics/Toiletries Growth | 11.2% [10] | August 2026 (YoY) |
| Telecom Equipment Growth | 10.7% [10] | August 2026 (YoY) |
| Retail Sales (YTD) | 1.9% [9] | As at July 2026 |
| Online Retail Transactions | 15.7% [10] | August 2026 |
| Net Business Formation | 992 entities [9] | As at August 2026 |
| Projected Annual Completions | 0.6 msf [9] | 2027–2031 |
Practical Application of Data
For Local Business Owners
Retailers in the cosmetics and telecommunications sectors are currently seeing strong growth [10]. Conversely, those in the cafe and traditional restaurant space may need to adapt their models to counter a general decline in sector sales [10]. The success of fast-food outlets (up 7.8%) suggests a consumer shift toward more affordable or convenient dining options [10].
For Residents and Visitors
Consumers looking for new experiences can find specialized offerings such as tofu-based gelato at Waterway Point and Suntec City, or Japanese-inspired tea and pastries at The Star Vista [8]. Those seeking luxury beauty brands may find new presence in suburban hubs like Tampines Mall [9].
For Property Investors
The limited pipeline of new retail space, particularly in Orchard Road (only 4% of upcoming completions), suggests that existing prime retail space will remain highly competitive [9]. Other City Areas are currently showing the strongest rental growth due to their diverse user base [9].