AN ANALYSIS OF RETAIL INSTITUTIONAL CHANGE IN SINGAPORE : A LIFE CYCLE APPROACH

Abstract

Retail institutions are constantly evolving. The retail scene in Singapore has undergone rapid changes over the decades. Different types of retail institutions assume a dominant position at different points in time. A variety of theories have been suggested by various scholars to explain institutional changes in the retail markets. These theories include the Retail Life Cycle theory which suggests that, like products, retail institutions evolve through four major identifiable stages : development and introduction, growth, maturity and decline. This study takes on the responsibility of identifying the retail institutional changes in the local retail scene. The Retail Life Cycle theory is used as the theoretical framework for the industry analysis of retail institutions, evaluation of present strategies and implications for future changes. It is observed that the 'no frills' discount stores such as Kmart Metro are in the development stage as they prepare to enter the market. The membership warehouse club, IMM Mega Mart introduced to Singapore in 1991 is at its introduction stage. The supermarkets are in the growth stage and are fast approaching the maturity phase. The department stores have already reached their watershed year in the maturity phase. The general provision shops, which have evolved over the decades, have entered the decline stage since 1982. This study will examine the strategic implications of the retail institutions at each stage and provide recommendations.