SECONDARY LOCATIONS FOR RETAIL OUTLETS - A DISADVANTAGE?

Abstract

The provision of retail/shopping space outside the primary shopping area along Orchard Road is the present trend of retail development. It has its roots in the early 70's when the first two suburban shopping centres were completed viz. Katong Shopping Centre and Queensway Shopping Centre. To date, there are about 380,000 square metres of retail space completed in secondary locations, including those lying within the Central Business District, but outside the prime shopping belt. This represents 65% of the total retail space available in Singapore. Results from surveys have shown a high occupancy rate of 96%. Thus retail outlets in secondary locations are apparently doing quite well. Can one safely infer from this that their success is not impeded at all by their inferior locations? Does it mean that developers can simply build a shopping complex wherever they wish? Hence, this calls for a closer analysis of locational factors and the underlying characteristics of land in Singapore, unique to themselves, which has guided, and will continue to do so, the trend of retail development.