Retail outlook brightens despite September sales slump

September proved to be a challenging month for the local restaurant and retail sectors, according to the latest Business Climate Survey released by the Statistics and Census Service (DSEC).

The survey has revealed a significant downturn in receipts for both industries following the summer holiday.

Restaurants and similar establishments experienced a 9.4% decrease in receipts compared to August, with Chinese restaurants suffering a 10.1% drop.

In contrast, Japanese and Korean restaurants saw a slight increase of 0.6%.

Retailers faced an even steeper decline, with sales falling 16.5% month-on-month. Notably, cosmetics and hygiene product retailers reported a 28.7% drop, while motor vehicle retailers enjoyed a robust 30.4% increase in sales.

Year-on-year comparisons were equally gray.

Restaurant receipts fell 5.5% from September 2023, with Chinese restaurants down 13.4%.

Retail sales fell 20.7%, with watch and jewelry retailers experiencing a 37.5% decline.

Looking ahead, expectations for October appear more optimistic.

About 42% of the restaurant operators DSEC surveyed expected increased receipts due to the National Day holidays (Oct 1-7), while nearly 48% of retailers expected sales growth.

Moreover, 48% of surveyed retail merchants anticipated a month-on-month increase in sales, with particularly optimistic projections from cosmetics and hygiene product retailers (70%), department stores (63%), leather goods retailers (57%), and clothing retailers (54%).

Conversely, about 16% of merchants expected a decline in sales during the same period. Nadia Shaw