IMPACT OF RETAIL WAREHOUSES ON CONSUMER BEHAVIOR AT TAMPINES, PASIR RIS AND SENGKANG

Abstract

Retail warehouses have become the latest retail format in Singapore with the opening of Ikea and Courts at Tampines towards the end of 2006. Through the Warehouse Retail Scheme implemented by the Government, three companies (Ikano Pte Ltd., Courts and Dairy Farm) were allowed to set up retail warehouses on industrial land at Tampines. These retail warehouses house multiple functions such as regional headquarters, warehouse and retail. This study was conducted with the main objectives of understanding how people received this retail concept, their nature of patronage at the retail warehouses and impacts of the retail warehouses on consumer behavior in relation to the town centres. Due to the fact that the third retail warehouse, GIANT, had yet to begin operations while the study was conducted, a predictive analysis was carried out on its impact on grocery shopping patterns. By means of surveys conducted at Tampines, Pasir Ris and Sengkang, it was found that the retail warehouses were generally well received amongst the people. It also revealed that the level of patronage at the retail warehouses in terms of frequency was relatively low. No impacts to consumer behavior in relation to the town centres were detected and most consumers felt that their grocery shopping patterns would remain unchanged.