Sales for non-necessity items dropped.
According to Colliers International, Singapore’s retail sales index (excluding motor vehicles) only rose by a very slight 0.7% year-on-year (YoY) in October 2012. For items that were not necessities, declines over the previous year were registered in October.
Here's more from Colliers International:
Sales of optical goods and books dropped by 3.6% YoY. At the same time, sales receipts at department stores, watches and jewellery, recreational goods, and wearing apparel & footwear fell by between 0.4% and 2.7% YoY.
This consumer spending restraint was also evidenced among tourists, as the 7.0% YoY growth in tourist receipts from January to June 2012 to some $11.5 billion, visibly lagged behind the 11.4% increase in tourist arrivals during the same period.
Hence, notwithstanding the buoyant leasing activity, subdued consumer sentiment tempered retailers’ confidence causing rents to slip in 4Q 2012. Monthly prime ground floor gross rents in Orchard Road as of the end of December fell by 0.9% from the previous quarter to $37.25 per sq ft. In the Regional Centres, the average monthly gross rent of prime space decreased to $33.42 per sq ft, after dropping by 0.2% from the previous quarter.
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