Professional Documents
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Shop Patronage
Shop Patronage
Shop Patronage
SHOP PATRONAGE
V Hotel (Lavender) / Prinsep Street / Bliss Hotel (Chinatown)
Clifford Mario Kosasih (1000294)
Goh Pei Xuan (1000286)
Ho Jia Jia Sharon (1000091)
Neo Jun Hao Kevin Josiah (1000133)
Oor Eiffel (1000293)
TABLE OF CONTENTS
1. INTRODUCTION
2. LITERATURE REVIEW
3. RESEARCH QUESTION
4. HYPOTHESES
5. PHOTOGRAPHIC MATERIAL
6. IN-DEPTH ANALYSIS FOR V HOTEL, PRINSEP STREET AND BLISS HOTEL OUTLETS
7. BIVARIATE SCATTER-PLOTS
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8. CONCLUSION
12
9. DESIGN RECOMMENDATIONS
13
10. BIBLIOGRAPHY
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1. INTRODUCTION
In a built environment, it is interesting to observe how the patronage of a retail business is affected by the attributes of its
location. This characteristics range from the most immediate context such as shop visibility, sidewalk width and building
size to the location accessibility and the presence of competitive/complementary clustering. This experiment aims to find
a correlation between these different characteristics of three Cheers stores (a convenience store) that are located within
the central region of Singapore with its patronage per day. The three Cheers stores are the Prinsep branch, the V Hotel
Lavender branch and the Bliss Hotel branch. To investigate the different characteristics of the location, spatial accesibility
metrics and advanced spatial network analysis are utilised to understand the variation in patronage per day of these
three stores.
2. LITERATURE REVIEW
The effect of location and its attributes to retail establishments business has been studied by various scholars. Porta, Strano,
Iacovello and Messora discovers that location decision of different retail stores are affected primarily by street centrality
that leads to visibility and accessibility (2009, 463). When stores are concentrated in areas that are easily accessible and
the junction connecting different activity nodes, there is a higher chance for that stores to capture people who are passing
by that location for unplanned visits, hence improving their patronage.
Furthermore, Sevtsuk (2014) also confirms that the more accessible a location in a particular area is, the more likely that
location will become a retail establishment. This follows the fact that retail establishments want to attract as many people
as possible within its reach to increase its revenue. Thus, measures such as proximity to commercial activities, transit nodes
and road junctions contribute to the degree of accessibility of that location, which may result in the increase of patronage
of the retail establishments.
Other than the location centrality of retail establishments, Sevtsuk has also investigated the effect on the tendency of
clustering between stores that sell complementary and competitive goods with respect to the types of stores. While it is
observed that stores selling non-competing goods are generally clustering together, a more in-depth research suggests
that competitive clustering are more likely to be present among search goods such as clothings, apparel and restaurant
services as compared to convenience goods like liquor and groceries.
3. RESEARCH QUESTION
To understand how location attributes influence the shop patronage per day of similar stores.
4. HYPOTHESES
Our first hypothesis was that shops with larger view shed have higher patronage per day. View shed is a measure of
visibility from the nearby roads. Porta and Strano (2009) believes that centrality of location will result in better visibility
and hence more favorable for the retail establishments.
Our second hypothesis was that shops with closer proximity with competitive businesses have lower patronage per day.
This follows Sevtsuk (2014) findings that convenience stores selling non-search goods are less likely to be located nearby
other convenience store. This is because they sell similar and competing goods that require no comparison between store
to store, resulting in a lower patronage if they cluster together.
Our third hypothesis was that shops with closer proximity to more commercial activities have higher patronage per day.
This is measured by the GFA of the surrounding buildings which is interpreted to be proportional to the number of people
who are working or visiting the nearby buildings.
Our fourth hypothesis was that shops with closer proximity to transportation nodes with more traffic flow have higher
patronage per day. Based on the findings from Porta and Strano (2009), the more accessible the location is, the more
favorable it is for a retail establishment to be there. In this case, accessibility is measured in terms of the bus stops and
the number of tapouts on that bus stop. In this case, we assume that an increase in overall density of possible pedestrians
originating from transportation nodes at the location of the shop will result in higher patronage. However, this is with
consideration of the decay rate due to walking distance.
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5. PHOTOGRAPHIC MATERIAL
Supermarket
HDB Estate
7-Eleven
Condominium
Cheers at V Hotel
Community Centre
7-Eleven (MRT)
ICA Building
V HOTEL CONTEXT
Commerical Strip
SOTA
Hotel Rendevous
Chinatown Point
HDB Estate
MRT Entrance
6. IN-DEPTH ANALYSIS FOR V HOTEL, PRINSEP STREET AND BLISS HOTEL OUTLETS
VIEW SHED
V Hotel Outlet
1
4
2
3
6
4
4
5
5
6
Based on the view sheds of the three stores, it is seen that the larger the perimeter of the view shed, the higher the patronage
per day. However, the relationship between the two factors is not directly proportional as even though the stores at V Hotel and
Bliss Hotel have a similar patronage value, the perimeters of the view sheds are very different, which could be due to other factors.
Having a larger perimeter of view shed means that the store can be seen from more points, which increases the likelihood of
pedestrians visiting the store and results in a higher patronage per day.
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COMPETITIVE CLUSTERING
V Hotel Outlet
r: 20878
g: 13132.345
c: 46.17749
s: 17375.280
r: 13693
g: 3936.795
c: 4.37540
s: 9810.326
Shops with closer proximity with competitive businesses have lower patronage per day. In the case for Cheers, we chose to compare
against 7-Eleven stores as its major competitor as these two brands are the leading convenience stores in Singapore. Hence, we included
points in the network representing the various 7-Eleven stores which could be found within 600m reach of our respective Cheers outlet.
Besides having the 7-Eleven stores as our competitors, we have aso included the 13 Cheers outlets as our competitors. After utilising the
unaFindClosestFacility tool, we were able to determine the building points which are closest to the competitor stores as well as to our
Cheers outlets, allowing us to understand the distribution of the immediate market among competitors. From these, the gravity index of
each of our Cheers outlets to the distributed building points (as highlighted with the red lines below) was also calculated and compared
against each other.
r: 30928
g: 17077.151
c: 5.43163
s: 23124.473
V Hotel
170165.38
345
Prinsep Street
930322.10
579
Bliss Hotel
658805.00
365
Shops with closer proximity to more commercial activities have higher patronage per day. The commercial activities in the
area were measured based on the GFA of commercial areas (shophouses, hotels, commercial buildings, and malls). The
figures above were obtained with estimations made to the height of the buildings in the area according to our site observation and information found online.
The shophouses in the Chinatown area (Bliss hotel) are mostly 4 storeys high. The commercial buildings are at an average
of 6 storeys, hotels at 4, while malls at 3. The vicinity around the Cheers stall at prinsep has taller hotels and commercial
buildings with an average of 12 storeys. Shophouses in this region mostly has 3 storeys. The commercial buildings in the
vicinity of V Hotel is generally lower at a height of 4 storeys, with mostly 2 storeys shophouses.
With higher commercial activities in the vicinity, patronage is expected to be higher as volume of people increases. This
is because the cheers stores will be servicing more people. Also, with more commercial activities as attraction points, the
frequency of passers-by increases, possibly increasing patronage.
As we can see from the chart above, the Cheers store located at prinsep has the highest GFA of commercial activities
within a 600m walking radii. It, too, has the highest patronage per day.
V hotel
Prinsep
Bliss Hotel
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7. BIVARIATE SCATTER-PLOTS
ACCESSIBILITY
The Gravity index weighs the number of bus stops and tapouts per day and takes their distance into account. From these diagrams,
it can be seen that Cheers stores with a larger number of commuters coming from the bus stops result in a higher patronage per day,
as with a higher pedestrian density in that area, it increases the likelihood of them entering the store to purchase a good. However,
the proximity of bus stops to the Cheers stores do not affect their patronage significantly (Diagram 2) as this is dependent on the
number and type of bus services available at the bus stop.
The Betweenness index indicates the frequency of pedestrians passing by the Cheers stores as they go from bus stops to the
surrounding buildings. Diagram 3 shows that as the number of passers-by increases, there is a higher patronage per day to the
Cheers stores. As trips to convenience stores are usually unplanned trips, passing by these stores would increase the probability of
passers-by entering the store to purchase a good. Therefore, with a higher frequency of passers-by, it increases the patronage of
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the store.
8. CONCLUSION
The four hypotheses that we have postulated in the beginning of the research hold true to a certain extent, considering
the assumptions made.
1. shops with larger view shed have higher patronage per day
2. shops with closer proximity with competitive businesses have lower patronage per day
3. shops with closer proximity to more commercial activities have higher patronage per day
4. shops with closer proximity to transportation nodes with more traffic flow have higher patronage per day
We have managed to understand better the correlation between each location attributes to the patronage of each
stores. However, it is difficult to justify the relative significance of each location attributes with respect to the patronage
per day. Therefore, for future research, it would be better if we can design a model that takes into account these four
attributes to be able to come up with the relative significance.
To improve the research, we could have counted pedestrians passing by the respective outlets. This can be done at
different timings and intervals during various times of the day and the week. Hence for this research exercise, due to the
time constraints, it may not be justified to take one or two sample to represent the overall pedestrian count.
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9. DESIGN RECOMMENDATIONS
These design improvements were suggested after taking into account the
patronage of convenience shops in relation to their urban envrionment.
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7-11
New
Cheers - V Hotel
New
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10. BIBLIOGRAPHY
Porta, S., Strano, E., Iacoviello, V., Messora, R., Latora, V., Cardillo, A., Scellato, S. (2009).
Street centrality and densities of retail and services in Bologna, Italy. Environment and Planning
B: Planning and Design, 36, 450465.
Proudfoot, M. J. (1937). City Retail Structure. Economic Geography, 13(4), 425428.
Vandell, K., & Carter, C. C. (1993). Retail Store Location and Market Analysis: A Review of
Literature. Journal of Real Estate Literature, 1, 1345.
Eppli, M., & Benjamin, J. (1994). The Evolution of Shopping Center Research. Journal of Real
Estate Research, Vol. 9(1), pp. 532 .
Eppli, M., & Shilling, J. (1996). How Critical is a Good Location to a Regional Shopping Center?
Journal of Real Estate Research, Vol. 12(3), 459469.
Sevtsuk, A. (2014). Location and Agglomeration: the Distribution of Retail and Food Businesses
in Dense Urban Neighborhoods. Journal of Planning Education and Research, 1(21).
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