EFFECT OF UPGRADING AND COMPETITION AT CHONG PANG NEIGHBOURHOOD CENTRE

Abstract

In Singapore, the emergence of suburban shopping centres has posed a threat to small businesses in the Housing and Development Board (HDB) towns and neighbourhood centres by providing more variety and a more pleasant environment and ambience for shopping and browsing. In order to remain competitive, retailers in town and neighbourhood centres must upgrade their shops, provide better layout and offer good service. One good example is Chong Pang Neighbourhood Centre in Yishun New Town, which was upgraded in 1992 in response to the Retail Sector Development Programme (RSDP). This dissertation examines the effects of upgrading after five years as well as the degree of competition that Northpoint, a suburban shopping centre, has on both shoppers' shopping pattern and shopkeepers' business performance. The survey results revealed that shoppers did not feel that the upgrading was significant to alter their shopping pattern because they continued to purchase convenience goods, which were lower in prices at Chong Pang. They also patronised Northpoint, which is in the vicinity for the air-conditioned environment and a wider variety of merchandise. Despite the presence of Northpoint, the shopkeepers did not feel that it was a serious threat, instead a lack of customers and the slowdown in the economy would contribute to the failure in their businesses. Therefore, they did not feel the need to relocate to Northpoint, especially for those who own their shops at Chong Pang.