INTRA-CENTRE RETAIL LOCATION ANALYSIS

Abstract

Retail location has traditionally been studied from the inter-centre perspective. In comparison, intra-centre retail location analysis, that is, the study of location of retail outlets within a large shopping centre environment, has received much lesser attention. However, as pointed out by Ghosh and McLafferty (1987), slight location differences in an extremely competitive retail environment can have significant effect on the market share and profitability of retail stores. Hence one of the most important factors that contribute to the relative attractiveness and success of a retail store is undoubtedly the intra-centre location attribute. Given the increasing numbers of large, multi-purpose and highly competitive shopping centre in Singapore, intra-centre retail location study is of much relevance and should not be neglected. For the purpose of this study, 276 shoppers were interviewed. The findings show that the relative importance of each location attribute in contributing to the attractiveness of retail stores differs from different store types. For instance, in the case of souvenir and gift shops, "Distance away from anchor store"' is deemed to be a very significant factor while for clothings and shoes outlets, the ''Distance from similar or compatible trade type" factor is more essential. On the other hand, based on the study, no significant corelationship is found between the shoppers.' ratings for the importance of each location attribute and the shoppers' background. In conclusion, the study is supportive of the notion that within a large shopping centre, the relative attractiveness of each retail store varies according to its location attributes. Further, the study suggests the notion that the importance of each of the location attribute vary among different shop-types and there is no fixed set of location factors that could contribute to a perfect location for every retail store in a shopping centre. It is important therefore, for the retail space developers, investors or users to incorporate intra-centre retail location study in formulating the retail location strategy.