COMPETITION IN SURBURBAN SHOPPING MALL - REGIONAL VS TOWN CENTRES

Abstract

The recent mushrooming of suburban shopping malls within HDB estates leads to stiff competition between the malls. The overcrowding scenario is apparent in Tampines Regional Centre, Simei and Pasir Ris Town Centres and is used as a case study. This study looks at the competition between the shopping malls in the bigger Regional Centre and nearby smaller town centres. Poisson Gravity Model (PGM) is used to examine the covariates affecting the residents' shopping frequency. The likelihood of cross-shopping between the centres is analysed using Probit and Logit Models. The effect of clustering of shopping malls in the centres on the residents' outshopping patterns is also discussed. Using the PGM, the empirical evidence identifies that the frequent mall shopper is young, relatively affluent, from a small family and prefers shorter travelling time. The malls in the Regional Centre, with more anchor tenants and shops, attract more shoppers. The probit and logit analyses show that the anchor tenants in the malls in the Regional Centre are able to meet shoppers' demands, thus cross-shopping from the Centre to town centres is less likely to occur. The eastern "shopping district" brings about lower frequency of outshopping visits. Based on the survey on Tampines residents, the shopping malls in the Regional Centre are likely to pose competitive threats to those in the nearby town centres, as they offer similar merchandise to shoppers. This study seeks to provide insights to aid both planners and retailers in formulating their planning policies and retailing strategies, respectively.