RETAIL SPACE SELECTION CRITERIA

Abstract

Much has been written over the past few years on the supply of retail space in Singapore and most writers have tended to agree that an excess of supply is likely to exist for the next couple of years. Little has been undertaken on the underlying factors of demand for retail space. Different retail types exhibit different generative powers. Some are typically very much self generative while others are dependent upon shared businesses, that is, the generative powers of its neighbours. Yet there is still another group : the suscipient businesses, which are neither generated by the store itself nor by neighbouring retail establishments. Retail stores to a large extent are interdependent upon one another in varying degrees. Such spatial association can occur in two manners, the clustering of stores dealing in similar merchandise and the clustering of stores dealing in various different goods. To some trades, agglomeration advantages have shown to surpass cost considerations, yet to most of the retailers, access is the sole determinant influencing the selection of a site. Certain trades considered the prestige of a complex in a favourable, district as important while others are more particular about the location of the unit within the complex and the availability of ample car parking. Initially, this academic exercise comprises a general background of the study and a review of the theoretical framework of locational factors. Subsequently, the analysis of a survey, firstly by trade types and later via other sub-groups such as region, unit size, frontage and ownership status seeks to examine the application of the theoretical concepts. A summary of the influence of location factors motivating the demand for retail space concludes this work.