Novel coronavirus exacerbates threat to retail space: Morgan Stanley Research

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People pictured walking along Orchard Road, 2 February, 2020.
FEBRUARY 11, 2020 - 12:02 PM

The 2019 novel coronavirus could become a drag on Singapore's retail space, with its impact exacerbated by the disruptive presence of e-commerce, which shoppers may now view as a safer alternative to shopping malls said Morgan Stanley analysts in a note on Monday. 

E-commerce has posed a structural headwind even before the virus outbreak. Online sales value in Singapore increased 16 per cent year-on-year in November 2019, as penetration rose to 8 per cent of November retail sales (up 1.4 percentage points year-on-year). 

Morgan Stanley also provided an infographic on the latest property data points across the region.