COMPETITION IN SUBURBAN RETAILING - TAMPINES MALL VS CENTURY SQUARE

Abstract

In the recent times, more shopping malls have sprung up in the suburban regions, leading to intense competition in suburban retailing. Tampines Regional Centre is used as a case study, as its two modern malls, Tampines Mall and Century Square, are located very close to each other. Towards the end of the year, another two malls will come up in Simei (Eastpoint) and Pasir Ris (White Sands). This study looks at the nature of competition between Tampines Mall and Century Square. Theories of competition like central place theory, theory of agglomeration and spatial interaction theory are reviewed and matched to the results of a field survey, to gauge which theory best applies to the data. Results indicate that spatial interaction theory gives the best fit to the data, as frequency of visit increases when malls are located close together, but decreases as distance to the malls rises. Though closeness brings in more shoppers, it does not ensure the success of a shopping centre. Here, Century Square is not as successful as Tampines Mall, due to its poorer location, internal layout and tenant mix. Following the spatial interaction theory, Eastpoint and White Sands are predicted to have little impact on Tampines Mall and Century Square. Instead they will increase the combined attraction of the eastern part of Singapore, thus attracting more non-easterners to the region. When other regional centres are developed, the overall number of trips to Orchard Road is expected to decrease, as residents in these regional centres will find it unnecessary to travel downtown when they can find almost all they need in these suburban malls.