By Tessa Wong

THE cut-price deals retailers are dangling in front of shoppers during the Great Singapore Sale (GSS) appears to have worked.

MasterCard users in Singapore have spent more in the first weekend of the country's biggest sale compared to the same period last year.

According to data from MasterCard, its local cardholders spent a total of US$26.3 million (S$38.3 million) over three days from May 29 to 31. This was about 7 per cent more than the US$24.6 million from last year's debut weekend.

Tourists, however, spent less during the first weekend. It was a 12 per cent slide compared to last year. MasterCard attributed this to lower visitor arrivals.

Overall, both locals and tourists spent a total of US$37.5 million in those three days, just pipping last year's haul of $37.2 million.

The figures were surprising, as Singapore is still in the midst of its worst recession in decades.

Despite the bad economic times, Singaporeans appear happy to spend.

The MasterCard data, which has been used as a barometer of response to GSS in the last few years, coincides with a continuing increase in overall small-ticket item sales for both March and April in the monthly retail sales index compiled by the Statistics Department.

Ms Sng Ngoi May, chairman of the Orchard Road Business Association, said retailers have generally seen 'good results' so far during this sale.

When faced with reduced consumer spending at the start of the recession last year, retailers scrambled to offer discounts of up to 70 per cent, which they have continued to dangle till now.

This year's GSS has also seen a higher number of credit card promotions in order to entice shoppers.

Ms Sng said such efforts to draw customers in have paid off.

'The discounts offered now are more attractive than in previous years, and with the H1N1 flu outbreak in many countries, people have decided they would rather stay in Singapore. This may have contributed to the increased spending,' she added.

Additional reporting by Reico Wong

This article was first published in The Straits Times.