Online shopping and physical retail shopping behaviour

Abstract

This study examines the impact of online shopping on traditional shopping behaviour and analyses how these changes affect the management of malls in Singapore. A total of 205 respondents have been surveyed. Findings revealed that online shoppers make purchases online due to convenience and competitive prices. They only spend a small proportion of their income on online purchases. Online shopping have also changed one’s traditional shopping behaviour in terms of reduced trips and less time spent in the shopping mall, these changes in shopping behaviour may hurt the physical retail industry in the long run. Even though online shopping is ubiquitous, the perceived threats of the fall of the physical retail industry has been unfounded as majority of the online shoppers still think that physical shopping space is important. However, there is a shift in what consumers look for in a shopping mall as compared to the past. Variety of products used to be the deciding the factor but it has now been changed to types of food and beverage available, ambience and entertainment options available. In order for shopping malls to stay relevant and continue to enjoy strong foot traffic, the mall management must strategise their tenant mix and continuously upgrade the malls to ensure that the consumers’ needs are met. This paper only explored the consumers’ perspective of online shopping and how their traditional shopping behaviour has changed; further research is needed on other stakeholders to have a better picture of the performance of physical retail market in view of the expansion of the online shopping industry.