ARE NICHE MALLS LOSING OUT TO RETAIL GIANTS? � YOUNG ADULTS � PERSPECTIVE

Abstract

Large-scale shopping malls are dominating the majority of the new retail space supplies in the retail market. Moreover, there are observations that consumers’ preferences for shopping are changing from a pure utilitarian approach to a mixture of utilitarian and hedonic factors. This indicates that niche malls, a type of shopping malls that centers their marketing strategy on product pricing and variety are potentially facing threats from the large-scale malls and losing its competitive edge in Singapore. Researches also showed the importance of youth and young adult shoppers with respect to the entire consumer base in Singapore, hence the research was geared towards understanding their perception on niche mall competitiveness. The study was carried out with two objectives: (i) are young shoppers choosing to visit large-scale malls over niche malls, and (ii) if (i) is true, is the lack of an all-rounded leisure shopping environment the main cause for (i)? It was found that the increase in supply of large-scale malls have indeed created a pull on the niche mall consumers. The availability of an all-rounded leisure experience that are provided by the large-scale malls are the main reasons stated by respondents for the choice of large-scale malls over niche malls even though their utilitarian motives are better served by the advantages present in the niche malls. The young consumers now do not value niche malls solely for its positioning, and are expecting the niche malls to satisfy their expectations on hedonic factors affecting shopping experience.