Summary
This technical report outlines the anticipated trends and challenges in the Singapore retail market for 2026 and beyond. It discusses the expected subdued growth of approximately 1.0% in retail sales, influenced by inflation and changing consumer behaviors. The report highlights the impact of government initiatives, such as the SG60 vouchers, which are expected to support essential spending categories like supermarkets while potentially offsetting declines in discretionary spending. It also addresses the implications of the upcoming Johor Bahru-Singapore Rapid Transit System (RTS) opening, which may lead to retail leakage of 3% due to increased cross-border shopping. The report further details the performance of various retail sectors, including food and beverage, which is projected to face challenges due to shifting consumer preferences towards hawker centers and at-home dining. Overall, the report provides a comprehensive analysis of the current retail landscape and forecasts potential shifts in consumer spending patterns.
