THE IMPACT OF ONLINE SHOPPING ON THE PHYSICAL RETAIL MARKET IN SINGAPORE

Abstract

This study examines the impact of online shopping on the retail property industry in Singapore. A total of 381 consumers, retailers and property developers have been surveyed for this study through electronically sent questionnaires. The findings revealed insights on the perceptions of consumers, retailers and developers in their assessments of the impact of online shopping on retail spaces. It is found that tangible effects are felt in retail sales volume and leasing expectations of retailers. Although consumers still frequent retail malls which proved the enduring viability of retail malls, it is undeniable that online shopping has posed a significant threat from the perspectives of retailers and developers. Major players in the retail industry also believe that an appropriate response would be to adopt an online marketing strategy and incorporate such into traditional business schemes. While most believe that the trend towards online shopping is a source of potential risk for landlords and tenants in the retail real estate market, there leaves more to be understood as to how landlords could structure their retail property to defray such risks. Further research is therefore needed to investigate the new marketing strategies adopted and their ramifications on the future of retail property performance in Singapore.