CHANGES IN RETAIL PERFORMANCE ALONG THE ORCHARD BELT

Abstract

Retail performance in the Orchard Belt, the premier shopping hub of Singapore, has hitherto been better than other areas. However, with the development of retail facilities in the suburban areas as a result of decentralisation, and the change in shopping patterns, it is likely that retail activities along the Orchard Belt will be affected. In view of the current retail conditions, this study seeks to determine the changes in the retail activities of the Orchard Belt and to ascertain the impact of Ngee Ann City. The study was approached from an empirical perspective, relying on surveys, interviews and general observation. The primary data for this study was from shoppers' counts at the various subject shopping centres on Wednesday (6 September 1995) and on Saturday (16 September 1995); and interviews conducted during the month of September and October 1995. Two separate sets of questionnaires were targeted at the shoppers and the shopkeepers respectively along Orchard Road. The findings revealed that mere location of a shopping centre in the Orchard Belt does not ensure its success. Shopping centres along the Orchard Belt performed differently, registering varying counts of pedestrian traffic i.e. the cluster of shopping centres comprising Ngee Ann City, Wisma Atria and Paragon enjoyed an increase in pedestrian flow for both weekday and weekend, while other subject shopping centres, except for Forum, experienced a fall in patronage. The finding revealed that Singaporeans still prefer the Orchard Belt because of the clustering of shopping centres which offer a great variety of styles and quality. The completion of the MRT has also made it highly accessible to shoppers from all over the island. With regard to business performance of the retailers, the survey results revealed that the focal point of retailing has been at the cluster of shopping centres comprising Ngee Ann City, Wisma Atria, Paragon and Lucky Plaza. Retailer located in this cluster of shopping centres performed better than those at the other clusters. The findings have shown that the better performance of shopping centres at the focal point of the Orchard Belt can be attributed to the following factors: high accessibility, better merchandise variety / quality mix and shopping environment. The survey findings also indicate that Ngee Ann City has a very significant impact on the retail activities along the Orchard Belt.