The impact of e-commerce on the tenant mix of shopping centres and their implications on the development of future shopping centres

Abstract

Previous studies find out that e-commerce affects the performance of physical retail shops and shopping centres. However, most of them focus on the rental income and sales volume of a shopping centre. Rare number of study will discuss the impact of e-commerce on the more critical factor, tenant mix to the success of a shopping centre. Hence, this dissertation will therefore unmask the relevant impacts and recommend tackling measures to shopping centres in Hong Kong. Argyle Centre (Phase I) and Lang Ham Place are used as study cases since newspapers point out that their performance difference is linked to the e-commerce development in recent years. By interviewing the shoppers from the two shopping centres and the leasing managers, the result finds out that the most critical determinants of tenant mix for Hong Kong shopping centres are tenant selection, tenant placement and anchor tenant. Also, there are several impacts of e-commerce on the performance and tenant mix of shopping centres but the extent of impacts is varied. The discrepancies are due to the tackling measures against e-commerce adopted by respective relevant parties. Finally, a specific tenant mix planning strategy concerning the impact of e-commerce development is recommended.