INFLUENCE OF SPACE PLANNING IN THE SUCCESS OF RETAIL MALLS

Abstract

Growing retailing business and urbanization have prompted development of shopping malls in Singapore. However the traditional market formats, despite contributing to increasing traffic congestions, also coexist along with shopping malls. It is observed that consumers’ buying preferences become more diversified as the extent of retail stores increase within a confined area. Thus, the market size reaches a threshold and the consumers’ preferences of shopping are jeopardized due to indecisiveness in shopping (Rajagopal, 2010). Retail malls and street markets are important routes to market in the urban landscape, though lack of planning and vision in developing urban marketplaces lead to chaos and congestion of traffic affecting the growth retailers (Kok, 2007). However, such urban planning allows retailing integration and collective behavior of consumers in street markets and shopping malls (Loafland, 1985). In Singapore, the retail industry has been growing at a rapid speed. While many studies on retail mall have been carried out, few studies have been conducted to analyze the impact of taking into account the factors of both interior and external space planning. Therefore this study aims to understand the critical attributes of a successful retail site and determine the significance level of space planning as a factor in influencing consumer patronage. Essentially, a total of 3 external factors and 7 internal factors were determined from various literatures and were ascertained through a questionnaire. The top four factors include affordability, comfort level, tenants and accessibility. The results of the analysis also reflected an overall disparity between consumers’ perception of comfort level required with that of their preferred retail site. Further analysis showed that affordability, being ranked 1st in the mean ranking factors, is indeed proved significant as the most important factor affecting consumer’s decision to patronize a retail site. The consideration of affordability factor serves as a basis for future research on the enhancement and planning of future retail malls.