Academic Writing-Thesis
ELEMENTS INFLUENCING THE ACHIEVEMENT OF SHOPPING CENTRES IN AUSTRALIA: A CASE STUDY OF ALTONA GATE SHOPPING CENTRE AND ST VINCENT DE PAUL SOCIETY IN ALTONA NORTH, AUSTRALIA.
BY
A RESEARCH REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF BARCHELOR OF PROPERTY AND REAL ESTATE MANAGEMENT TO DEAKIN UNIVERSITY.
DATE
DECLARATION
This research report is our original work, and it has not been presented to any other institution for the award of any academic certificate.
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ACKNOWLEDGEMENT
First and foremost, may we record our profound gratitude to our almighty God for the gift of life and health our supervisor …… for the professional guidance and patience with us in making this report a reality. We also acknowledge our class-mates for their unwavering friendship and moral support during our studies.
EXECUTIVE SUMMARY
For the last years, Australia’s economy has experienced an important revolution, which has endures to develop powerfully. The progress of a shopping Centre has got vibrant changes too.
Two shopping Centres, Altona Gate shopping Centre and St Vincent De Paul Society, are chosen in this research. Five elements comprising of accessibility, visibility, location, size, design and layout and tenant mix which influence the achievement of shopping Centres in Australia are selected after reading the relevant literature review. Nonetheless, many researchers reasoned on the comparative significance of the elements, for instance, Beddington (1982) and Abratt et al. (1985) both highlighted that the triumph of a shopping Centre was influcenced by the tenant mix. Additionally, Abghari and Hanzaee (2011) addressed tenant mix as a significant element of a shopping Centre.
TABLE OF CONTENTS
DECLARATIONi
ACKNOWLEDGEMENTii
EXECUTIVE SUMMARYiii
LIST OF TABLESvi
LIST OF FIGURESvii
CHAPTER ONE: INTRODUCTION1
1.1 Introduction1
1.2 Ancient improvement of shopping Centres in Australia2
1.3 Significance of the study2
1.4 Goals and Objectives3
1.4.1 Goals3
1.4.2 Objectives3
1.5 Scope of the study3
1.6 Methodology4
CHAPTER TWO: LITERATURE REVIEW5
2.1 Classification of Shopping Centres5
2.1.1 Definition of “Shopping Centre”5
2.1.2 Classification of Shopping Centres5
2.2.1 Definition of “Success”6
2.2.2 Definition of “Successful Shopping Centre”6
2.2.3 Factors affecting the success of shopping Centres6
2.3 Hypothesis9
2.3.1 Opportunities for shopping Centres to increase financial yields for investors whilst maintaining tenant satisfaction are affected by factors influencing the success of the shopping Centres.9
CHAPTER THREE: METHODOLOGY10
3.1 Research Design10
3.1.1 Questionnaire Design10
3.2 The Sample population11
3.2.1 Target samples of retail shopping Centres11
3.2.2 Sample size and sampling method11
CHAPTER FOUR: EMPHASIS ON THE TWO SELECTED SHOPPING CENTRES IN ALTONA NORTH.12
4.1 Significant factors for the success of the Altona Gate shopping Centre.12
4.1.1 Location, Accessibility and Visibility13
4.2.1 Location, Visibility and Accessibility14
CHAPTER FIVE: FINDINGS AND DATA ANALYSIS15
5.1 Gender15
5.2 Findings from the Questionnaires of buyers/Shoppers15
5.2.1 Gender15
5.2.2 Age Group16
CHAPTER SIX: DISCUSSION AND RECOMMENDATIONS.17
6.1 Recommendations17
6.2.1 Accessibility17
CHAPTER SEVEN: CONCLUSION18
7.1. Problems of the study18
7.1.1 Comprehensive Analysis of the whole study.18
7.1.2 Surveys of Tenants and Shoppers18
REFERENCES19
LIST OF TABLES
Table 3.1.1: Attributes/Factors of successfully shopping Centres used in this study11
LIST OF FIGURES
Figure5.1 : Gender of tenant15
Figure 5.2 : Gender of Shoppers15
Figure 5.2.2: Age Group distribution (Shoppers)16
CHAPTER ONE: INTRODUCTION
1.1 Introduction
Expansion of shopping Centres has experienced great changes of late and it is one of the chief significant trends in Australia. It entails a broad measure of investments for investors and owners, and might realize a rate of return that is worthy.
In Australia, There is a great struggle for success amid the shopping Centres necessitating the need to upgrade the standard of regional shopping Centre to enhance its competitiveness.
According to the Sydney Morning Herald Property Review 2014, there is a rising trend in the number of shopping centres in Australia.
In this report, the first chapter is about the introduction laying the foundation with the importance of this research and the aims to attain alongside the scope of the study. The second Section comprises the foundational ideas such as classification of shopping Centres, definitions, and ascertains factors leading to the success of a shopping Centre alongside recognized hypothesis in this study. Then, chapter three makes known the methodology of this study. Chapter four covers a comprehensive research on the Altona Gate shopping Centre and St Vincent De Paul Society shopping Centres in order to consider the success factors. Chapter five outlines the results of the research. Lastly, there are recommendations and conclusion.
chapter one comprises of four key divisions. The beginning division is about the early growth of shopping Centres in Australia. Part two presents the importance of this research. The third section concerns the goals and objectives. The last section scrutinizes the scope of this research and methodology.
1.2 Ancient improvement of shopping Centres in Australia
The group of Westfield originated from Sydney in the western outskirts. The initial growth was called "Westfield Place", and launched in Blacktown in the year 1959 July. Westfield as a name comprises of two separate words; "west" which is borrowed from the location of West Sydney, and the second name "field" is because of its location which was on a farm land that was subdivided. John Saunders and Frank Lowy are known to have opened the centre.
In 1960, The Westfield company got listed on the Australian Stock Exchange, afterwhich additional five centres were built by it New South Wales and later on in 1966 to 1967 it expanded into Victoria and Queensland.
https://en.wikipedia.org/wiki/List_of_Westfield_shopping_Centres
1.3 Significance of the study
BBC (2007) conducted a study which stated that for every one in ten residents of Australia frequently appreciated the services shopping Centres provided and seemed to be obsessive buyers whose desire is to purchase all items in a shopping Centre.
Furthermore, in the latest years the income of the household has gone up leading to a plea for improved value of life, this is according to the 2011 Population Census.
1.4 Goals and Objectives
1.4.1 Goals
The objective of this research report is to ascertain the opportunities for the shopping Centres to increase financial yields for investors while maintaining tenant satisfaction in Australia. Two case studies Altona Gate shopping Centre and St Vincent De Paul Society are used as examples to find out the opportunities for the Centres to increase financial yields for investors while maintaining tenant satisfaction.
1.4.2 Objectives
The objectives of this research are as list listed below:
a. To identify factors which regulate the success of a shopping Centre.
b. To carry out an analysis of the two selected shopping Centres so as to identify the opportunities for increasing financial yields for investors while maintaining tenant satisfaction.
The hypothesis is proposed is:-
The opportunities for shopping Centres to increase financial yields for investors while maintaining tenant satisfaction are affected by the factors influencing success of the shopping Centres.
1.5 Scope of the study
This research report chiefly centers on sub-regional and a neighborhood shopping Centres in Australia. Altona Gate shopping Centre in Altona North VIC, 123-134 Millers Road, St Vincent De Paul Society is situated in Altona North VIC 3025 Dohertys.
1.6 Methodology
The methodology of this research will be built on qualitative and quantitative methods. Primarily, the development of shopping Centres in Australia is study centered on the literature review, secondary data and documents of the government accessible from the internet. Furthermore, interviews were carried. Those interviewed were visitors and tenants of the selected shopping Centres (Altona Gate shopping Centre and St Vincent De Paul Society).
CHAPTER TWO: LITERATURE REVIEW
This study necessitates broad investigation of appropriate literatures comprising magazines journals, newspaper, books, government reports and websites. Emphasis is made on previous scholarly studies.
2.1 Classification of Shopping Centres
2.1.1 Definition of “Shopping Centre”
Urban Land Institute (1999) defines a shopping Centre as “a group of architecturally unified commercial establishments built on a site that is planned, established, owned and managed by an operating unit related in its location, size, and type of shops to the trade area that it serves”.
The International Council of Shopping Centres publications (ICSC 2015), the leading influential association on shopping Centres worldwide, defines a shopping Centre as a collection of retail and other commercial establishments that is planned, developed, owned and managed as a single property.
2.1.2 Classification of Shopping Centres
According to Alexander and Muhlebach (1992), shopping Centres might be developed in regard to their tenant mix, size, catchment anchor and series of operatives. Essentially, eight categories of shopping Centres exist: community, convenience, neighborhood, regional, specialty, super-regional, outlet and power. For the purposes of this report we will consider two categories under which our target centers fall:
Neighborhood shopping Centre has normally between 60,000 to 160,000 sq ft. of GLA. This is inclusive of a minimum of one anchor tenant for instance a supermarket, however they might comprise more than one anchor tenants. The rest of the shops are engaged such as restaurants, dental offices, banks and medical. It can be fruitful with a base population of 6,000 to 50,000 .St Vincent De Paul Society shopping Centre belong here
Regional shopping Centre generally ranges in size from 300,000 to 1M sq ft of GLA. They are fastened by 2-3 main occupants, and at least one of them ought to be a department store which is full-line, other anchors may be discount stores. The minor shops are filled by, food service, jewelry and fashion traders. The population is roughly 140,000 to 350,000 .Altona Gate shopping Centre belongs here.
2.2 Factors affecting the success of shopping Centres
2.2.1 Definition of “Success”
According to Oxford Advanced Learner’s English Dictionary (7th Edition), “success” is the achievement of a desired end, or of fame, wealth or social positions.
2.2.2 Definition of “Successful Shopping Centre”
It is not in the domain of traders to influence the triumph of a shopping Centre. Rather, it’s the influence of buyers who can decide the success of shopping malls as they effect the flow of pedestrian and revenues from sales of the tenants. Therefore the freedom to choosing their mall of preference is within their control. Consequently, the success of mall hinge on its ability to attract buyers (Fung 2004).
Generally, the meaning of “successful shopping Centre” is the attaining of the desired end of the shopping Centre. This desire end is discussed in details later on.
2.2.3 Factors affecting the success of shopping Centres
Institute of Real Estate Management in 1990 finalized a research out of which five factors affecting the of success of a shopping Centres were established:-
Proper location & visibility
Easy access
Size
Design and layout
Harmonious tenant mix
The following factors determine the success of shopping Centres:-
I. Location and Visibility
The greatest location for a shopping Centre ought to be situated at a well-improved district, which is near to bus or railway stations and transport exchanges. Traders will be fascinated to conduct their commerce there because of a great accessibility and visibility. Customers from diverse regions also will be appealed by the malls. Ghosh and McLafferty (1987).
II. Accessibility
Accessibility implies a decent physical admission that offers opportune transportation to clients who can get to the shopping Centre with large transportation system.
Alexander and Muhlebach (1992) once said that accessibility was a very serious factor for all types of shopping Centres. Modern shopping is undergoing difficulties in regard to convenience that a proper access will easily solve.
III. Size
Generally, the size of a shopping Centre denotes to its entire floor area. The size of the shopping centre should be appropriate to the market size it aims to provide service to (Gorman 1989 and Leasing Retail Space 1990).
Majority of the customers choose to stopover in a larger shopping Centre compared to smaller one. This is because greater shopping Centre can offer additional spacious and relaxing environment to customers making them feel more comfortable and enjoyable.
IV. Design and Layout
Alexander and Muhlebach (1992) noted that “in the planning and designing of a shopping Centre, the development team must satisfy two major customer bases. The first customer base was the space user or tenant and the second was the shopper – customer.”
V. Trade and Tenant Mix (Tenant Mix)
Tenant mix has a significant part for the success of a shopping Centre, which in reality can rise its attraction and yield a distinction from the rest of the rivals. Tenant mix can be defined to as the to the choosing and appointment of the retail tenants so as to make the most of the rental income of landlord.
The Institute of Real Estate Management (1990) reasoned that creating combined effort is the key purpose of tenant mix.
2.3 Hypothesis
2.3.1 Opportunities for shopping Centres to increase financial yields for investors whilst maintaining tenant satisfaction are affected by factors influencing the success of the shopping Centres.
According to a research accomplished by the Institute of Real Estate Management in 1990, five factors determining the success of shopping Centres were established: proper location & visibility, Size, Easy access, Design and layout and Harmonious tenant mix.
CHAPTER THREE: METHODOLOGY
This chapter is to recognize the research methodology. The aim of this rearch report is to identify opportunities for the Centres to increase financial yields for investors, while maintaining tenant satisfaction in shopping Centres in Australia.
To achieve this aim, I will examine the subject matter with two selected shopping Centres which are Altona Gate shopping Centre and St Vincent De Paul Society. In addition, chapter three entails two major parts. Part one deals with the method of data collection. Part two is about the sample size and sampling method.
3.1 Research Design
According to McGoldrick (1990), semantic distinction tactic is perhaps the most extensively scaling system used in trade research. This method includes questioning of interviewees directly concerning the comparative assessment of pre-specified characteristics.
3.1.1 Questionnaire Design
Questionnaires are fitly designed for tenants and customers. Tenants are well-defined as those who run trades in the two designated shopping Centres whereas customers/shoppers are well-defined as those found in the shopping Centres. The survey is mainly based on structured questions.
To accomplish an outcome that is numeric from the questionnaires, the questions are customized by scales which are on point form so as to rate the outcomes of interviewees. “1” stands for the most significant or good-looking whereas “7” stands for least significant or good-looking.
Table 1Table 3.1.1: Attributes/Factors of successfully this study
Table 3.1.1: Factors affecting the success of shopping Centres used in this research
Factors
Measurement (scale)
(1 = Most attractive,…7 = Least attractive )
(1 = Most important,…7 = Least important )
1. Location and Visibility
2. Accessibility
3. Size
4. Design and Layout
5. Trade and Tenant Mix
3.2 The Sample population
3.2.1 Target samples of retail shopping Centres
In Australia, there are numerous shopping Centres but only two of them are selected as target samples for analysis including Altona Gate shopping Centre in Altona North VIC, 123-134 Millers Road, St Vincent De Paul Society is situated in Altona North VIC 3025 Dohertys.
3.2.2 Sample size and sampling method
As stated earlier, for the survey of tenants, diverse classes of retail shops were selected. Ten tenants in diverse trades were chosen in each shopping Centre so that 40 tenants were interviewed. For the survey of buyers/shoppers, ten shoppers were selected in each shopping Centre so that 40 total shoppers were interviewed.
Frank and Lindsay (2002) pointed out that the questionnaire should only contain questions that can be understood easily and elaborated when conducting face-to-face interviews.
CHAPTER FOUR: EMPHASIS ON THE TWO SELECTED SHOPPING CENTRES IN ALTONA NORTH.
Introduction
Two regional shopping Centres in Altona North will be intensely examined to deliver the success of shopping Centres. The chosen malls including Altona Gate shopping Centre in Altona North VIC, 123-134 Millers Road, St Vincent De Paul Society is situated in Altona North VIC 3025 Dohertys
4.1 Significant factors for the success of the Altona Gate shopping Centre.
Source: Internet.
4.1.1 Location, Accessibility and Visibility
Location Map of Altona Gate
4.2 Key factors for the success of St. Vincent De Paul Society shopping Centre.
Source: Internet
4.2.1 Location, Visibility and Accessibility
Location Map of St. Vincent De Paul Society shopping Centre
CHAPTER FIVE: FINDINGS AND DATA ANALYSIS
A survey was conducted at the two selected shopping Centres with the objective of identifying opportunities for the Centres to increase financial yields for investors while maintaining tenant satisfaction. Data collection was through conducting face-to-face interviews and use of questionnaire.
5.1 Gender
Forty respondents of tenants in diverse classes of groups were interrogated in August and September 2016 in order to show their ranking of the factors affecting the success of shopping centers.
Figure5.1: Gender of tenant
Figure 1Figure5.1 : ender of tenant
5.2 Findings from the Questionnaires of buyers/Shoppers
5.2.1 Gender
Forty respondents of buyers/shoppers were interrogated
Figure 5.2: Gender of Shoppers
Figure 2Figure 5.2 : Gender of Shoppers
5.2.2 Age Group
From the outcome of the interview as listed in figure 5.2.2, it displayed that the age of the interviewees’in this survey ranged from 19 to 56 years old. Interviewees aged from 19 to35 occupied 54% while 46% of them were between 35 and 56 years old. Thus, they play an important part in making sales volume of tenants, increasing occupancy rate of the malls, making benefits of tenants and resulting in the success of the malls.
Figure 5.2.2: Age Group distribution (Shoppers)
Figure 3Figure 5.2.2: Age Group distribution (Shoppers)
CHAPTER SIX: DISCUSSION AND RECOMMENDATIONS.
The findings of this research showed the extent to which the five factors influence the success of a shopping Centre. Thus highlighting the opportunities for the Centres to increase financial yields for investors while maintaining tenant satisfaction.
6.1 Recommendations
The surveys gather views from tenants and buyers, and also derive some inferences on the opportunity of upcoming development of shopping Centres in Australia. Even though the chosen shopping Centres are not that effective in Australia, there is still opportunity for improvement.
Shopping Centres are diverse from other types of possessions. When guests are not satisfied with the expediency and attraction of a mall, that is, its convenience, its design or its tenant mix, they might stopover elsewhere. It will result in a poor effect on the volume of sales of the entire tenants and pedestrian flow of the shopping Centre. Chapter six tries to commend some opportunities for shopping centers to increase financial yields for investors while maintaining tenant satisfaction.
6.2.1 Accessibility
A. Stretched transport for mainland visitors
Indigenous transportation network and amenities for regional shopping Centre in Australia are well established. Nevertheless, community and sub-regional shopping Centres are not developed. Due to this undeveloped transport system, the Centres cannot enlarge their catchment areas.
For example, Altona gate and St. Vincent De Paul Society shopping Centres must offer additional quantities of cross border coaches and spread out the service hours to gratify the desires of mainland guests.
CHAPTER SEVEN: CONCLUSION
7.1. Problems of the study
7.1.1 Comprehensive Analysis of the whole study.
The chief restraint of this research is that only two chosen shopping Centres are considered. It might not get a complete representation of the rest of shopping Centres in Australia. The few number of questionnaires that are considered may be insufficient to replicate the actual condition. Additionally, this research is only restricted to the sub-regional shopping Centre excluding other categories of shopping Centres like CBD or super-regional shopping Centres in Australia. Moreover, the source of this research is restricted in that the investigation may not be entirely complete. Consequently, there exists some favoritisms from people.
7.1.2 Surveys of Tenants and Shoppers
Regarding the survey, the sample size is not great enough because the size is only 40 for tenants against 70 for shops. The samples are limiting and the minor number of respondents being interrogated then may be defied. Moreover, the outcome may be unfair and that doesn’t truly replicate the real condition. Lastly, Interviewees might reply centered on their own views and dogmas.
REFERENCES
1. Abratt R, Fourie J LC & Pitt LF (1985), “Tenant mix: the key to a successful shopping Centre”, Quarterly Review of Marketing Spring 1985:19-26
2. Alexander, A. A. and Muhlebach, R. F. (1989), “The shopping center: how is it different?” Journal of Property Management, Vol. 54 No. 1, pp. 58-60.
3. Alexander, A. A. and Muhlebach, R. F. (1992), “Shopping Centre Management”, Institute of Real Estate Management of the National Association of Realtors, Chicago, U.S.
4. Abghari.M and Hanzaee K.H. (2011), “Investigation of the Effects of Stores' Tenant Mix and Internal and External Environmental Conditions on Customer Satisfaction from Shopping Centres in Iran”, International Journal of Marketing Studies. Vo. 3, No.4; November 2011
5. The Sydney Morning Herald Property Review 2014
6. Historical development of shopping Centres in Australia,retrieved on 23 August 2016 https://en.wikipedia.org/wiki/List_of_Westfield_shopping_Centres
7. Census and Statistics Department, Gross Domestic Product Q1 2015, retrieved on 16 August 2016 from
http://www.australia.gov.au/about-australia/facts-and-figures/statistics
8. Ghosh A and McLafferty S. L. (1987), “Location strategies for retail and services firms”, Lexington, Mass, Lexington Books
9. Gorman B. (1989), “Tends in retail development”, Journal of Property Management 54(4): 26-31, July-August
10. Fung, K. Y. (2004), “A study of tenant mix planning of regional shopping Centres and its implications”, Dissertation for the Master of Housing Management, the University of Hong Kong.
11. Gorman B. (1989), “Tends in retail development”, Journal of Property Management 54(4): 26-31, July-August
12. McGoldrick, P. J. (1990), “Retail Marketing”, London: McGraw-Hill Book
13. Co. McGoldrick, P.J. and Thomspson, M.G. (1992), “Regional Shopping Centres”,Aldershot, U.K.: Avebury
14. The Institute of Real Estate Management (1990), “Leasing Retail Space, The Institute of Real Estate Management”, Chicago, IL.
15. Website of BBC (2007), retrieved on 15 June 2015 from http://news.bbc.co.uk/chinese/trad/hi/newsid_7100000/newsid_7105 00/710 5351.stm
16. Frank and Lindsay (2002), “Principles of Research Design in the Social Sciences”, USA, Routledge, Florence, KY