CRITICAL FACTORS AFFECTING THE DECLINE OF DEPARTMENTAL STORES IN SINGAPORE

Abstract

Once unrivalled in patronage and pulling power, departmental stores are now fighting a losing battle against alternative forms of shopping such as internet shopping, shopping overseas and specialty shops. This study aims to investigate the factors that are causing the premature demise of departmental stores in Singapore. To that end, a triangulation technique involving the interpretation and analysis of both qualitative data and quantitative data is utilized. Qualitative data, generated through in-depth interviews, highlights the advantages and disadvantages of departmental stores, as well as various reasons why departmental stores are not appealing to shoppers. Quantitative data, generated through a survey involving 300 respondents, is then interpreted using One-way ANOVA and Factor Analysis. The ANOVA tests several hypotheses, ultimately concluding that neither gender nor age has a significant impact on shoppers’ opinions that several factors were leading to a decline in departmental stores. Factor analysis collapsed 11 factors into 5 main factors responsible for the decline, including a decline in quality and variety of products offered, changing tastes of shoppers, emergence of alternative forms of shopping, decreased competitiveness of departmental stores as well as poor shopping experiences in departmental stores.