Consumers expected to focus on the essential and the functional.
NTUC FairPrice continues to beat other retailers as the top retailer in Singapore with its actuals amounting to $3.31b (US$2.51b), according to Euromonitor’s Top 100 Retailers in Asia 2021.
Dairy Farm grabbed the second spot with its actuals amounting to $1.70b (US$1.28b) whilst the Sheng Siong Group took third with its actuals at $1.16b (US$881m).
Meanwhile, Alibaba rose to fourth place from its previous sixth in last year’s study whilst previous fourth placer Takashimaya Co. Ltd. dropped down to seventh in the list.
According to Euromonitor, 2020 had been a challenging year for Singapore’s retail landscape with consumers cutting back on their discretionary spending.
The early days of the circuit breaker saw panic buying in supermarkets and hypermarkets, with Singaporeans sweeping the shelves for household essentials and hygiene products.
Meanwhile, apparel and jewellery retailers saw steep revenue declines, due to the decrease in social occasions and product usage needs, a reliance on tourism spending and permanent store closures.
“The retail recovery for Singapore is expected to be a dynamic, uncertain and multi-year process due to Singapore’s reliance on external demand for economic growth. Amidst a muted outlook, consumers are expected to focus on the essential and the functional, with spending on discretionary goods expected to be limited. It is important for retailers to integrate their presence and product offerings into these new consumer lifestyles. This includes emphasising product value and versatility, incorporating technology, such as QR codes and contactless payment, and offering a seamless omnichannel retail experience,” the study said.