BMI View: Exposure to international financial and product markets will cause
a slowdown in Singapore's economy. Worsened consumer sentiment will negatively
affect retail sales and push smaller, niche retailers out of the market.
However, the shift towards e-commerce will prevail as firms rush to offer not
only topnotch online shopping services but also new ways of combining physical
and online retail environments. The trend will likely provide the market with
more resilience in the medium term.
Key Views & Developments:
■ The retail sector is contracting as sales dropped 3.2% y-o-y in February 2016
according to Singapore Department of Statistics. Groceries, communications and
household goods sub-sectors posted the deepest double-digit falls.
■ Deteriorated consumer sentiment and adverse economic conditions prompted a
number of retailers to scale down their operations in Singapore or leave the
market altogether. The list includes New Look, Celio and iwannagohome, all of
which are closing down, and Al-Futtaim and CB2 shrinking their operations.