IT MAY be a recession year, but shoppers in Singapore still cannot resist a good deal.

The massive promotions and steep discounts rolled out during this year's Great Singapore Sale (GSS) appear to have worked, with MasterCard data released yesterday showing that cardholders spent almost the same amount as during last year's GSS, which was a good year.

They spent US$697.7 million (S$1.01 billion) on their cards during the sale period of end-May to end-July, about 0.5 per cent less than last year's US$701.1 million.

Local cardholders were responsible for over two-thirds of that amount, with the rest charged by tourists - a pattern similar to last year's sale.

And like last year, it was a tasty experience for many. The top category of spending among all cardholders was once again eateries, with US$46 million spent on dining.

Department stores came in next, followed by clock, jewellery, watch and silverware stores.

Gadgets were still among the top buys for Singaporean cardholders, who spent 33 per cent more at electronics stores during this year's GSS, compared to last year.

At the same time, they cut back on eating out, with spending in eateries down by 15 per cent, but their expenditues were up 51 per cent in supermarkets.

This year's sale, an annual highlight on the shopping calendar, saw recession-hit businesses slashing prices by up to 70 per cent and dangling giveaways to woo shoppers.

The Singapore Retailers Association (SRA), the sale's main organiser, also pulled out the stops with more joint promotions, while the Singapore Tourism Board supported it with a flashier marketing campaign.

Official retail data from the Statistics Department showed that spending on almost all categories - from watches and gadgets to shoes and furniture - rose in June, the first month of the GSS, compared to May.

Those statistics, coupled with the MasterCard data, which is usually seen as an early indicator of the GSS' success, may point to the industry turning a corner.

Ms Lau Chuen Wei, executive director of SRA, observed an improvement in recent statistics.

'The year-on-year gap in retail sales, excluding motor vehicles, is starting to close. Hopefully, this trend will continue and retailers can recover,' she said.

This article was first published in The Straits Times.