DESPITE worries about inflation and a slowing economy, it appears that Singaporeans still love to shop during the Great Singapore Sale - even more than last year.

During the opening week of the sale, four major retailers said business was up compared to the first seven days of the shopping festival last year.

Sales at places such as home furnishings store Courts, department store Takashimaya and book chain Popular have jumped by between 10 and 20 per cent, according to a Straits Times check.

The numbers bucked earlier forecasts that Singaporeans would rein in their spending when the islandwide sale kicked off on May23. Experts had predicted that local consumers, worried about the rising cost of living and higher food prices, would cut down on non-essential spending.

However, not all retailers have experienced surges in business. For example, hardware store chain Home-Fix reported a 7 per cent drop in sales.

A Straits Times check with 72 shoppers, though, found most willing to dip into their wallets.

Nearly 80 per cent said that they are spending as much during this year's sale as they did in last year's. The checks also showed that many are not shying away from picking up big-ticket items.

For instance, furniture bundles offered at Courts - comprising a sofa, coffee table and TV console - have seen a double-digit spike in sales, said the company, as have electrical appliances like air-conditioners.

A spokesman for Takashimaya said shoppers this year have focused on top-of-the-line brands, particularly for women's accessories and apparel.

Singapore Retailers Association executive director Lau Chuen Wei said people are spending more this year precisely because of the current dip in the economy. She called it a 'stock up and save' mentality.

'Consumers are out to grab as many bargains as they can while they can, and before prices go up even more,' said Ms Lau.

Retailers had their own theories. Ms Lynn Lee, marketing manager for Popular Book Company, said neighbourhood malls have been more aggressive in advertising and have put up more mall-based events, resulting in increased traffic for tenants.

Harvey Norman managing director Angelo Augustus said the company has benefited from a change in lifestyle habits among cost-conscious consumers.

'If people are not spending outside because of inflation, then they would be staying at home and investing in home entertainment,' he said, adding that high- definition television sets and DVD players are selling well.

Or perhaps Singaporeans, like university student Audrey Ong, 21, just cannot resist a good offer.

'How much I spend depends on whether there are items I like and whether there are good deals to be had. I'm not really trying to budget here,' said Ms Ong.

This article was first published in The Straits Times on Jun 6, 2008

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