Rising costs have not deterred a sizable share of Singapore shoppers, with the latest Adyen Index 2026 Singapore Retail Report showing that 42% of consumers are spending more than they did a year ago.
Cost pressures and spending trends
The study attributes the increase primarily to the higher cost of living and shifts in interest rates, which 62% of those spending more cite as their main motivation. A further 36% say their needs or priorities have changed, while 20% point to economic uncertainty as a factor.
In contrast, 25% of respondents say they have reduced their expenditures over the same period. The data suggest a split consumer response to inflationary pressures, with nearly half of the population continuing to increase their outlays despite tighter budgets.
Younger shoppers lead the rise
Generation Z and Millennials are the most active segments. Half of Gen Z (50%) and 51% of Millennials report higher spending, compared with 36% of Gen X and 29% of Baby Boomers.
Average purchase values on social‑media shopping platforms also differ by age. Gen Z spends about S$104 per transaction, while Millennials average S$106. Those figures drop to S$80 for Gen X and S$62 for Baby Boomers.
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Beyond price, lifestyle choices appear to shape behavior. Around 28% of Gen Z and 17% of Millennials say they are spending more to “enjoy life,” a sentiment shared by only 6% of Baby Boomers.
AI tools reshape the shopping experience
AI assistants have become common among Singapore shoppers, with 72% of the population having used them for purchasing decisions. Among users, 72% say the technology helps cut through online noise, 68% claim it provides faster inspiration, and 66% use it to discover unique brands.
Adoption is highest among younger consumers: 85% of Gen Z and 80% of Millennials rely on AI assistants while shopping. Meanwhile, 46% of respondents desire a seamless experience across online and physical stores, 43% want real‑time product visibility, and 38% expect technology to make shopping quicker and more convenient.
Retailers have largely adopted AI as well. According to the filing, 99% of surveyed Singapore retailers use AI in some capacity. The most frequent applications are customer service and support (46%), followed by marketing and promotions (45%), customer experience (43%), and operations and efficiency (42%).
Despite widespread use, 95% of retailers still encounter barriers to broader AI integration. Competing priorities or limited resources affect 39% of firms, integration challenges impact 38%, and a shortage of internal AI expertise hinders 35%.
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Payment reliability remains a sticking point
Payment errors at checkout continue to erode consumer confidence. About 59% of shoppers say a checkout mistake negatively influences their view of a retailer. Of those, 24% report a significant drop in trust, 20% would abandon the purchase and avoid the retailer in the future, and 15% say they would switch to a competitor.
These findings highlight the importance of reliable payment processing as a core component of the overall retail experience.
Comparing this pattern to previous years, the current surge mirrors earlier periods when younger consumers drove growth in online retail, yet the scale of AI‑enabled spending appears larger this time. The combination of cost pressures and technology adoption creates a distinct situation that retailers must manage.
The report’s insights suggest that retailers aiming to capture the spending power of Gen Z and Millennials should prioritize AI‑driven personalization while ensuring seamless, error‑free transactions. As cost of living concerns persist, the ability to offer convenient, trustworthy shopping experiences will likely determine which brands retain loyalty in Singapore’s competitive market.
