IMPACT OF THE GLOBAL RECESSION ON SHOPPING BEHAVIOUR IN SINGAPORE

Abstract

Studies have shown that recession has an effect on shopping behaviour. Shoppers have been found to be more price conscious when making shopping purchases. In the recent global recession, Singapore experienced a drop in consumer retail sales in the third quarter of 2009. This study examines how the downturn affects shopping behaviour in urban and suburban retail areas. The objectives of the study are to identify how urban and suburban malls perform during recession, and how the type of products sold during recession affects shopping centre performance. The changes in shopping behaviour before and during recession are investigated through data obtained from a questionnaire survey. A sample size of 300 respondents was used for this study and the surveys were conducted at Orchard Road and Tampines Regional Centre. Five hypotheses were tested using the Chi-Square test of association to measure the changes in shopping behaviour during recession. The survey findings show that there is a greater tendency for shoppers to purchase goods in suburban malls during a downturn. The largest change was seen in middle to high-income earners. At the same time, the effect of recession on shopping expenditure is seen more in specialty goods than convenience goods. Also, shoppers in suburban areas also exhibited more conservative behaviour by purchasing lower range shopping products. Lastly, there was a decrease in shopping frequency overall with central areas being more affected during a recession. However, shoppers spent more time shopping on each trip.