IS FOOD AND BEVERAGES THE MAIN DRIVER FOR CONSUMERISM IN SINGAPORE RETAIL MALLS?

Abstract

Modern disruptive technology has significantly altered the way businesses operate. This dissertation was an academic exercise to determine the effect that e-commerce had on shopping malls in Singapore, and whether Food and Beverages (F&B) had replaced Fashion as the main driver of consumerism in malls. This study also explored the optimal tenant mix and placement in malls that would bring in the most shoppers, and learnt the challenges that F&B tenants faced. In addition, suggestions on how malls could bring in more footfall and sales were introduced. Results from survey and interviews revealed that even though e-commerce appeared to have dominated the retail industry, malls were still frequently visited by Singapore residents. F&B was indeed the main driver for consumerism in malls as it scored the highest count as a reason for visiting malls. Hence, malls should allocate a higher percentage of the tenant mix to F&B, and based on the survey results, more focus should be placed on restaurants. The study also identified strategies, such as placing anchor tenants at the mall ends or top floor, and interspersing F&B outlets with retail stores, which could be implemented to create an optimal consumer traffic flow. Based on the in-depth interviews, it was discovered that the key challenges that F&B tenants faced include labour shortages, high capital costs and overheads, limited seating capacity, health and/or environmental expectations and rapidly changing technology. Suggestions for malls to enhance competitiveness included more Advertising and Promotions (A&P), reward and loyalty programmes, technology innovation, resting areas, and lifestyle F&B with a mix of experiential activities, education, beauty and wellness, and fun events.