Shopping Mall Case Study

907 Words 4 Pages
• The number of shopping centers in the country increases every year [1]. The development of shopping centers was boosted by the fast growing economy and population in Malaysia.
• Shopping malls is a quasi-public park as it is owned and regulated. As shopping malls are developed almost every year with newly added features by the mall managers; it has become a popular public space for people in urban areas to socialize (Noorliyana and Ismail, 2014)
• Socialization is part of human development. People socialized in order to avoid loneliness and to feel secure (Borges, Chebat, & Babin, 2010). People love to be around their community. People seek for others for attention and approval. Socialization allows interaction and exchanging knowledge. Socialization
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Trip factors such as distance and mode of travel
• It is often stated that retail success is tied to retail location. Craig et al. (1984) assert that
• good locations allow ready access and attract large numbers of customers to a store
• Dato’ Ghazali Mohd Ali, Director, Property Division, Boustead Group said that most successful retail projects, location is crucial in order to attract shoppers with high spending propensity.
• Location is the most important element in determining the success of any particular shopping complex and a well located and well managed mall will continue to weather the business storm [13, 14]. This is because of the believe that location has great influence on customer decisions when choosing shopping malls to patronize. Akin to location is accessibility and is a critical factor that also determines the success or failure of a shopping centre and this is often measured by the ease with which customers and other users move in and out of the shopping centre [15]. Customers always consider the element of accessibility high in their shopping decisions. An efficient public transport system with a good inter-modal link helps in movement of people and goods. Location of a shopping mall near public bus and taxi terminals will encourage the inflow of customers. (Aliagha, Qin, Ali, Mat Naim,
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• Location analysis should begin with a general area analysis including economic conditions, population, potential competition, and growth (James et al., 1975). It also requires the definition of a trading area, roadway and transportation system, and traffic patterns and the volume of traffic (Powers, 1997).
• Mercurio (1984) highlighted the major topics that must be addressed in a location strategy as follows:
(1) Internal factors (The Company): type of retail business, type of markets, sales expectations, market coverage requirements, operating policies, merchandising approaches, pricing, and advertising
(2) External factors (The market): physical environment, economic base, population base, demographic characteristics, expenditure potential, retail environment, and available existing facilities
• The location decision is important because opening a business costs a lot of money, the retailer is committed to the location for a long period of time even with a lease, competition is getting tougher and a good location is one way to beat the competition, and problems such as store saturation, an uncertain economy, and tough zoning laws are making good locations harder to

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