OVER SATURATION OF RETAIL SPACE IN ORCHARD ROAD?

Abstract

A phenomenon of over saturation of retail space is observed in Orchard Road due to the decreasing number of tourist arrivals and the spending capacity of local consumers caused by economic recession. It is further attributed by the increasing competition from arising shopping centers in the suburban and secondary shopping area. A detailed research is done on the history of Orchard Road and its development over the years. Land structure and its land use component are understood. Characteristics that contribute to it success as a "shopping paradise" are studied. Factors affecting the demand for retail space in Orchard Road such as tourism, unemployment rate and GDP growth rate which affect the spending capacity of local consumers and competition from newly built shopping centers in the suburban and secondary shopping area are analysed. Using chi-square test, factors affecting respondents' choice of shopping location, such as age, education and monthly household income are determined and proven. Local consumers' shopping behaviour, patterns and preferences are further analysed through survey results. Based on the decreasing demand and consumers' shopping behaviour, it is concluded that retail space in Orchard Road is over saturated.