Retail outlook brightens despite September sales slump

S 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

Retail outlook brightens despite September sales slump

Retail outlook brightens despite September sales slump

Retail outlook brightens despite September sales slump

Retail outlook brightens despite September sales slump

Retail outlook brightens despite September sales slump