The magnetism of suburban shopping centers: do size and Cineplex matter?

• Published in: Journal of property investment & finance 2007-03, Vol.25 (2), p.111-135
• Main Authors: Ooi, Joseph T.L, Sim, Loo-Lee
• Format: Article
• Language: English
• Subjects: Cinema; Commercial real estate; Consumer behavior; Consumer behaviour; Externality; Patronage; Property management; Retail sales; Shopping centers; Shopping centres; Singapore; Studies; Theaters & cinemas; Traffic congestion; User studies
• ISSN: 1463-578X; 1470-2002
• DOI: 10.1108/14635780710733816

Purpose - This paper aims to address two questions related to the magnetism or drawing power of suburban malls: first, does physical size matter, and second, what is the externalities effect of housing a Cineplex within a shopping center?Design methodology approach - The study was carried out through an extensive survey covering 1,283 shoppers in nine selected suburban shopping centers in Singapore. The effects of physical size and the presence of Cineplex on the magnetism on the selected suburban shopping centers are evaluated using analysis of variance (ANOVA) tests. Their effect on shopping duration and expenditure pattern is also empirically tested using a recursive simultaneous equations model.Findings - The survey results affirm that both physical size and the presence of a Cineplex enhance the magnetism of suburban shopping centers. A larger shopping center can facilitate a greater variety of shops and create a more pleasant environment for the shoppers, thus enticing shoppers to visit and stay longer. Cinema patrons prefer to watch movies at Cineplex located in shopping centers. Controlling for the endogenous relationship between duration of visit and amount spent in the shopping center, the regression results show that, while physical size and Cineplex have a positive effect on the duration of visit, they do not necessarily have a direct effect on the amount spent by the patrons in the shopping center.Originality value - One of the main challenges for mall owners and managers located outside the traditional shopping belt is how to attract shoppers to patronize their malls. While the impact of shopping center size on retail rents and center attractiveness has been addressed in the literature, this paper adds some new insights into the field. The focus on whether the presence of a cinema complex within a shopping center affects its magnetism or not is novel.