Singapore, 24 December 2025 — Singapore’s retail industry is heading into 2026 with measured optimism, driven by steady sales trends, a strong tourism rebound, and major regional retail events drawing global attention. While analysts predict a subdued expansion of about 1% in 2026, retailers and observers say the outlook is shaped by shifting consumer behavior, digital adoption, and broader economic conditions that influence how households spend and shop.
Steady sales growth leading into 2026
Retail sales in Singapore continued to expand throughout 2025. Data released by the Singapore Department of Statistics shows that total retail sales grew 4.5% year‑on‑year in October 2025, extending solid growth seen earlier in the year across multiple categories, particularly watches, jewellery, and recreational goods.
Earlier in the year, retail sales also saw a notable uptick: Singapore’s July 2025 retail sales rose 4.8% year‑on‑year, with online channels contributing significantly to overall transaction value.
These trends reflect continued consumer interest in both experiential and tech‑related retail categories, from gadgets to lifestyle products.
Forecasts show moderate expansion for 2026
Analysts are expecting more measured growth next year, with DBS Group Research and other industry watchers forecasting around 1% retail sector expansion in 2026. This projection reflects expectations of modest consumption growth, with household spending likely to remain cautious amid broader global uncertainties.
With consumer sentiment still stabilising and spending patterns shifting, the industry is likely to lean on government support measures such as vouchers and event‑driven footfall to sustain momentum. These initiatives often help maintain non‑discretionary spending, particularly in supermarkets and essential retail categories.
Digital and event‑driven retail shaping the sector
Singapore continues to position itself as a hub for retail innovation in the Asia‑Pacific region. One highlight for 2026 will be NRF 2026 APAC: Retail’s Big Show Asia Pacific, a major retail industry event hosted in Singapore from June 2–4, 2026. The conference and exhibition will draw tens of thousands of retail professionals from around the world to explore trends in data, design, and digital transformation across the sector.
E‑commerce remains an important pillar for the industry’s future, as Singapore’s online retail market has expanded rapidly in recent years. With a high rate of digital connectivity and strong per‑shopper online spending, Singapore’s digital retail landscape will play a continuing role in overall sales growth and omnichannel integration for retailers.
Consumer behaviour and new entrants
Changes in how consumers shop are influencing the broader retail ecosystem. While discretionary segments like apparel and lifestyle products may face headwinds from cautious spending, durable goods and tech products have shown resilience, reflecting ongoing consumer interest in quality and long‑term value.
International brands continue to eye the Singapore market, drawn by its strategic location, affluent consumer base, and tourism appeal. New and expanding brands entering Singapore in 2026 can help diversify retail offerings and stimulate competition in both physical and online spaces.
City shopping districts and prime locations remain relevant
Despite the rise of digital channels, prime retail spaces such as Orchard Road and the Marina Bay area continue to attract international and domestic retailers seeking high footfall locations. Rental trends and occupancy rates in these areas suggest that well‑located physical stores still serve as important engagement points, especially when integrated with digital strategies.
Looking ahead to 2026, Singapore’s retail industry is expected to grow at a modest but positive pace, balancing cautious consumer spending with opportunities from tourism rebounds, digital transformation, and high‑profile retail events. While modest expansion reflects global economic headwinds and evolving consumer preferences, the outlook for the sector remains anchored by Singapore’s role as a dynamic regional retail hub and its ability to blend digital and traditional retail experiences.