COMPETITION IN RETAILING: SHOPPING CENTRES IN WESTERN SINGAPORE

Abstract

The number of suburban malls is increasing slowly but steadily. New shopping centres are found near almost every MRT stop. In the West, there are already four such suburban shopping centres, namely, Lot 1 Shoppers' Mall, Bukit Panjang Plaza, Jurong Point and WestMall Shopping centre. To remain viable, each shopping centre needs to have a minimum catchment area to support it. This study examines the trade areas of the four shopping centres and whether these retail areas are distinct or overlapping. It would mean that there is competition amongst these shopping centres if their trade areas are overlapping. In this study, the individual characteristics, for example, location, internal layout and tenant mix of each shopping centre is also discussed in detail. The primary objective is to provide a better understanding of each shopping centre and show how each of them tries to remain competitive in this market. It is indicated from the survey results that the trade areas for the four shopping centres are overlapping. ThiS means that these centres are indeed competing for the shoppers residing in the West. Thus, the management of the centres has to rely on extensive promotional campaigns and a optimal tenant mix to attract shoppers to the shopping centres.