Higher Spending Reshapes Singapore Retail, as 51% of Millennials Spend More while Baby Boomers Pull Back

Rising costs are changing how Singaporeans shop - with key differences in shopping channels and discretionary spending most sharply seen across generational lines. According to the Adyen Index 2026 Singapore Retail Report, 42% of Singaporeans say they are spending more than a year ago, while 25% say they are spending less. 

Among consumers whose spending has increased, 62% point to rising cost of living and changes in interest rates as the most cited reasons, with 36% indicating a change in needs or priorities, and 20% citing economic uncertainty. 

These new insights come from research from Adyen, the global financial technology platform of choice for leading businesses. In the newly published Index, the research examines the generational differences in how consumers are spending, what they expect from retailers and how open they are to more digital shopping experiences. The Index is designed to help enterprise retailers adapt to everchanging consumer demands in Singapore. 

Age is Shaping how — and why Singaporeans Spend

Younger Singaporeans are more likely to be spending more than they were a year ago, with 50% of Gen Z and 51% of Millennials reporting higher spending, compared with 36% of Gen X and 29% of Baby Boomers. They are also more likely to spend via social commerce: Gen Z spends an average of S$104 per purchase through social media shopping channels, while Millennials spend S$106, compared with S$80 for Gen X and S$62 for Baby Boomers. 

This appears to be driven not only by necessity, but also by lifestyle choices: 28% of Gen Z and 17% of Millennials say they are “choosing to enjoy life more”, compared with just 6% of Baby Boomers. Together, the findings suggest younger consumers are more willing to direct spend toward lifestyle-led and social commerce purchases, while older consumers remain more conservative in both channel choice and discretionary spend.

“Singapore consumers are responding to the same economic conditions in different ways, and that is creating a more segmented retail environment,” said Ben Wong, General Manager, Southeast Asia and Hong Kong, Adyen. “To navigate this fast-changing segmentation, the focus must shift from simply accumulating data to ensuring data integrity. Clean data, paired with the right platform and expertise, can retailers unlock actionable insights at a close to real-time speed.”

From Tech Tool to Shopping Companion: AI Shapes Discovery

In addition to social commerce, over seven in ten Singaporeans (72%), have used AI assistants to help with shopping. Among AI-assisted shoppers, 72% say AI helps them cut through online noise, 68% say it gives them inspiration faster and 66% say they want to use it to find unique brands and shopping experiences. 

This is most sharply seen among younger generations, with 85% of Gen Z and 80% of millennials indicating that they use AI assistants, making both ideal audiences for AI-driven commerce.

These expectations are raising the bar for retailers. Nearly half of Singapore consumers (46%) say they want a seamless shopping experience across online and in-store channels, while 43% want real-time product visibility and 38% want technology that makes shopping faster and more convenient. 

As Retailers Adopt AI, Checkout Trust Becomes the Pressure Point

For retailers, the findings point to a market where technology adoption is critical, but execution remains the bigger challenge. This is particularly prevalent with AI – with findings indicating that AI adoption is already widespread, with 99% of surveyed Singapore retailers saying they use AI in some capacity. 

At the same time, openness to new technologies does not lower the importance of trust. When encountering a payment error at checkout, 59% of surveyed consumers say it has a negative impact on their perception of the brand. Around a quarter (24%) say their trust drops significantly, 20% say they would abandon the purchase and avoid the retailer in future, and 15% say they would switch to a competitor. 

The most common applications are customer service and support at 46%, marketing and promotions at 45%, customer experience at 43%, and operations and efficiency at 42%. However, 95% of retailers say they still face barriers to wider AI adoption. 

Unlike some other APAC markets, where concerns about losing direct customer relationships are more dominant, Singapore retailers are more likely to cite practical implementation challenges. Their top barriers are competing priorities or limited resources at 39%, difficulties integrating AI into existing systems at 38%, and lack of internal AI skills or expertise at 35%. 

“AI in payments has the potential to be a force multiplier for the business. However, research continues to show that fundamentals must always be in place, namely that customers want reliable, secure payment experiences, and that retailers can protect conversion and build loyalty even as consumer priorities diverge,” said Wong.  “The challenge is not simply adding more technology. It is making sure the full retail journey, from discovery to checkout, works in a way that supports different consumer priorities while maintaining trust and performance at scale.”

About the report

This survey was commissioned by Adyen and conducted by YouGov Plc online from March to April 2026. The sample comprises 1,041 Singaporean consumers aged 18 years and older, and 304 Singaporean retail employees at the senior manager level or higher working for retailers with an annual turnover of at least SGD 25 million.

About Adyen

Adyen (AMS: ADYEN) is the financial technology platform of choice for leading companies. By providing end-to-end payments capabilities, data-driven insights, and financial products in a single global solution, Adyen helps businesses achieve their ambitions faster. With offices around the world, Adyen works with the likes of Meta, LVMH, SHEIN, Uber, L'Oréal, Cathay Pacific, Grab, Klook, and Singapore Airlines.