21st Pacific Rim Real Estate Society (PRRES)

Conference 2015, Kuala Lumpur, Malaysia

The Tenant Mix of Shopping Malls: A

Customers’ Perspective

Hasniyati Hamzah, University of Malaya, Malaysia

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Presentation Outline
Introduction – research questions and research objectives
Literature review
Methodology
Findings
Conclusion

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Intro Lit review Methodology Findings Conclusion

• Agglomeration criteria of a planned shopping mall are influenced by its

tenant mix, atmosphere, merchandise value, and accessibility (Teller &
Reutterer 2008).
• These agglomeration criteria can influence the fulfilment of consumer
requirements, thus affecting the attractiveness of a shopping mall (Teller
& Reutterer 2008).
• Getting the ‘right’ tenant mix remains the objective of shopping mall
managers/operators to order to establish the shopping mall’s image
and enhance the synergies within the shopping mall (Yuo, Crosby, Lizieri,
and McCann 2004).
• Whilst some researchers have successfully explored tenant mix
strategies, e.g. the role of variety (Fujita, 1989; Fujita and Thisse, 2002), a gap
still exists in operational principles to advise mall managers/operators.
• A challenge is the difficulty in getting turnover and revenue of shops
and shopping mall (sensitive and confidential information).
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Intro Lit review Methodology Findings Conclusion

• This study argues that

• Perceptions of shoppers regarding the tenant mix would be
a good indicator to guide strategies for the tenant mix of a
shopping mall.
• Little is known about Malaysian consumers’ perceptions
regarding tenant mix:
• What are their expectations of a good shopping tenant
mix?
• Are their expectations met in real life?

This study aims to find out the impact of tenant mix of

shopping malls in Malaysia from customer perspective.

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Intro Lit review Methodology Findings Conclusion

Theoretical framework

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Intro Lit review Methodology Findings Conclusion

Types of shopper
Economic

Solomon (1994)
• The economic shopper: a rational, goal-oriented shopper who is primarily interested in
maximizing the value of his or her money.
• The personalized shopper: a shopper who tends to form strong attachments to store
personnel.
• The ethical shopper: a shopper who likes to help out the underdog and will support
locally owned stores against big chains.
• The apathetic shopper: one who does not like to shop and sees it as a necessary but
unpleasant chore.
• The recreational shopper: a person who views shopping as a fun, social activity – a 6
preferred way to spend leisure time.
Intro Lit review Methodology Findings Conclusion

Types of tenants
Type Details Author
Retail -Traffic attractors and traffic users -Baey (1984)
tenants -Traffic user depends on traffic attractors -Ibrahim & Tan (2007)
Anchor - Long regarded as vital -Gruen (1960)
tenant - Typical traffic attractor -Konishi and Sandfort
- 20,000 s.f. to 100,000 s.f., can be a major (2003)
department store, a supermarket, a -Ibrahim and Tan
discount store or a large home mall. (2007)

Micro- - More flexible than bigger traditional -Ibrahim and Tan

mini retail tenants, low overhead & quick response. (2007).
space - E.g. fashion markets Harajuku and
(new age Shinjuku in Japan -Azuma (2002).
tenants) - Especially for young generation shoppers
- Seah (2002)

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Intro Lit review Methodology Findings Conclusion

Attractiveness factors of shopping malls

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Intro Lit review Methodology Findings Conclusion

• Mixed-method approach- Questionnaire survey (close-ended and

open-ended questions).
Part 1: Part 2: Shopping Part 2: Shopping
Background habits habits

• 200 respondents
• 4 shopping centres in Greater Kuala Lumpur area.
• Convenience sampling
• Face-to-face interviews
• Data analysed using Statistical Package for the Social Science
(SPSS)
• Frequency
• Weighted average
• Secondary data- institutional websites, government reports,
magazines, newspapers official publication, etc.
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Intro Lit review Methodology Findings Conclusion

Part 1: Background

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Intro Lit review Methodology Findings Conclusion

Part 2: Shopping habits

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Intro Lit review Methodology Findings Conclusion

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Intro Lit review Methodology Findings Conclusion
Do you have a favourite
shop? Visits to other shops

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Intro Lit review Methodology Findings Conclusion

Part 3: Perceptions on tenant mix

Weighted Rank
Effects of tenant mix Average
(Score)
Tenant mix variety enhances shopping 1
3.64
experience
Tenant mix provides good choices 3.58 2
Tenant mix influences preference 3.53 3
Tenant mix is appropriate 3.52 4
Tenant mix variety is exciting 3.39 5
Tenant mix variety enables good bargain 3.37 6

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Intro Lit review Methodology Findings Conclusion

Importance of tenant mix Weighted Average Rank

Location 4.52 1
Service 4.46 2
Merchandising 4.42 3
Atmosphere 4.33 4
Efficiency 4.26 5
Entertainment 3.92 6

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Intro Lit review Methodology Findings Conclusion

Importance vs Satisfaction
Importance Satisfaction
Tenant mix
Weighted Weighted
factors Rank Rank
Average Average
Location 4.52 1 4.38 1
Service 4.46 2 4.23 2
Merchandising 4.42 3 4.12 4
Atmosphere 4.33 4 4.19 3
Efficiency 4.26 5 4.05 5
Entertainment 3.92 6 3.06 6

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Intro Lit review Methodology Findings Conclusion

Part 4: Open-ended questions

Suggestions for tenant mix E.g. Variety
improvement of the mall “It should have a good
45
variety of shop for me such
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as bookstore, DIY shop,
35
grocery shop, pharmacy,
30
women & children
25
selection, cinema, and
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shoe shop.”
10
“Variety of tenant e.g.
5
bookstore, cinema, food
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Main Sectors

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Intro Lit review Methodology Findings Conclusion

Customer's perception of an ideal

tenant mix E.g. Price
60
“We want different shops
that cater to all kinds of
50
customers from low-end to
high-end products. It
40
should have variety of
choices, giving the
30
customer the right to
choose.”
20

“Range from not so

10 expensive to very
expensive.”
0
Varieties Orientation Facilities Service Atmosphere Price Convenience

Main Sectors

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Intro Lit review Methodology Findings Conclusion

• Respondents put “Location” at the top of Tenant Mix factors.

This supports prior findings from literature (Finn and
Louviere, 1996; Bell, 1999; Frasquet et al, 2001).
• Location is made up by both macro accessibility (access road
condition from the customer workplace or home to the
shopping mall) and micro-accessibility (parking facilities
within the mall and ease of navigation within the shopping
mall).
• Agglomeration economics in placement of shops i.e. similar
tenants to be placed together as per open ended responses.
E.g. the clothing shops have to be grouped together.

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Thank you

Q&A

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