The year-end festive season drives the retail consumption industry, supermarket consumption stocks are favored | Lianhe Zaobao

As the year-end holidays approach, the local retail consumption industry enters a peak season, and consumer stocks often attract market attention. Among various industries, analysts are optimistic about the growth momentum of supermarket consumption. Zhang Juexing, a stock broker at Phillip Securities, stated in an interview that besides household stocking demands, supermarkets also benefit from gift purchases, especially high-end imported goods and holiday items. Therefore, he expects this wave of consumption growth to benefit Sheng Siong Supermarket. He said, "Sheng Siong is a stock with good fundamentals, and sales typically rise during holidays, especially during the Lunar New Year and Eid al-Fitr, when stores usually see more customers. The sales increase in the first quarter of 2024 and 2025 can be attributed to these holidays." Another stock that may benefit during the festive period is Food Empire Holdings. Zhang Juexing mentioned that although it is not a retailer directly facing consumers, its unique positioning allows the company to benefit from holiday demand. "As a leading manufacturer of instant beverages, coffee, tea, and snacks, the company's products frequently appear in household food cabinets, gift baskets, and holiday gatherings. During periods such as the New Year, Eid al-Fitr, and Christmas, the consumption of packaged food and beverages surges." In his view, even though Food Empire Holdings does not operate retail stores, it can seize seasonal growth opportunities through its diversified product portfolio and strong export network. A report released by UOB Kay Hian indicated that driven by holiday demand during Christmas, New Year's Day, and other festivities, the performance of the retail and dining sectors is expected to improve in the fourth quarter of 2025 and the first quarter of 2026. Large online shopping events at the end of the year, such as "Double Eleven" and "Black Friday," will also bring strong seasonal growth, contributing to Singapore's retail performance in November, which typically extends into December. Additionally, the increase in tourist numbers will further stimulate consumption. Data from the Singapore Tourism Board shows that from 2019 to 2024, spending per tourist has surged by 24.4%, mainly driven by increased demand for accommodation, sightseeing, and entertainment. UOB Kay Hian's chief economist Yan Shengchong believes that the country's strong economic growth and domestic demand are expected to support the retail environment, thereby sustaining consumer spending and business activity. He anticipates that retail sales will remain stable in 2026, with an increase of about 2.0%