Brunei Darussalam’s retail sector recorded a 3.5 per cent decline in sales revenue in 2024, reflecting shifts in consumer spending patterns and a slowdown in domestic demand.
According to the latest report from the Department of Economic Planning and Statistics (DEPS) of the Ministry of Finance and Economy (MoFE), the retail sector generated BND1,679.7 million in sales revenue in 2024, down from BND1,740.9 million in the previous year. In terms of volume, retail sales activity also experienced a 2.6 per cent decline.
The drop in retail sales was mainly attributed to a 16.0 per cent decrease in the sales of pharmaceutical and medical goods, cosmetics, and toiletries in specialized stores. Other sectors that experienced declines include hardware, paints, and glass in specialised stores (down 10.0 per cent), computer and telecommunications equipment (down 8.8 per cent), and department store sales (down 2.8 per cent).
Fourth quarter performance
Retail sales in the fourth quarter (Q4) of 2024 saw a 5.6 per cent decline compared to Q4 2023, with revenue dropping from BND444.2 million to BND419.5 million. Volume also fell by 5.4 per cent, highlighting weaker domestic demand.
The largest drops in Q4 retail revenue were recorded in the following categories: Hardware, paints, and glass in specialised stores (-31.6 per cent); Mini marts (-13.8 per cent); Computer and telecommunications equipment (-8.6 per cent) and Supermarkets (-3.8 per cent).
However, on a quarterly basis, retail sales improved by 6.8 per cent compared to Q3 2024. This was driven by a significant increase in: Computer and telecommunications equipment sales (+46.9 per cent); Textiles, wearing apparel, and footwear sales (+30.3 per cent); Watches and jewellery sales (+24.8 per cent) and Electrical household appliances and lighting equipment sales (+20.2 per cent).
F&B services see positive growth in Q4
Despite the decline in retail performance, food and beverage services recorded growth in Q4 2024, with sales increasing by 1.1 per cent year-on-year, from BND113.1 million to BND114.4 million.
The growth was driven by: Catering services (+15.8 per cent); Other food services (+4.5 per cent) and Fast-food outlets (+3.7 per cent).
Compared to the previous quarter, food and beverage sales also saw a 2.0 per cent increase, with notable gains in: Other food services (+9.9 per cent); Fast-food outlets (+6.9 per cent); Catering services (+5.4 per cent) and Beverage-serving activities (+1.4 per cent)
However, for the full year of 2024, the food and beverage sector recorded a slight 0.5 per cent decline in total revenue, from BND468.5 million in 2023 to BND466.2 million.
The decline was mainly due to lower fast-food outlet sales (-3.7 per cent) and restaurant sales (-1.4 per cent).
Consumer spending outlook
The Retail Sales Index (RSI) and Food & Beverages Services Index (F&BSI) serve as key indicators of consumer spending trends in Brunei. These preliminary findings highlight shifting purchasing behaviors and ongoing economic adjustments in the retail and food services sectors.
Full reports are available on the DEPS website.
