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1 20.016 Urban Analysis 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)

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20.016 Urban Analysis

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)

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TABLE OF CONTENTS

1. INTRODUCTION 3

2. LITERATURE REVIEW 3

3. RESEARCH QUESTION 4

4. HYPOTHESES 4

5. PHOTOGRAPHIC MATERIAL 5

6. IN-DEPTH ANALYSIS FOR V HOTEL, PRINSEP STREET AND BLISS HOTEL OUTLETS 8

7. BIVARIATE SCATTER-PLOTS 11

8. CONCLUSION 12

9. DESIGN RECOMMENDATIONS 13 10. BIBLIOGRAPHY 16

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1. INTRODUCTIONIn a built environment, it is interesting to observe how the patronage of a retail business is a! ected 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 fi nd

a correlation between these di! erent 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 di! erent 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 e! ect 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 di! erent retail stores are a! ected 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 di! erent 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 confi rms 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 e! ect 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.

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3. RESEARCH QUESTION

4. HYPOTHESES

To understand how location attributes infl uence the shop patronage per day of similar stores.

Our fi rst 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) fi ndings 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 tra" c fl ow have higher

patronage per day. Based on the fi ndings 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

V HOTEL CONTEXT

Supermarket

HDB Estate

7-Eleven

Condominium

Cheers at V Hotel

Community Centre

7-Eleven (MRT)

ICA Building

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6PRINSEP STREET CONTEXT

Commerical Strip

POMO Shopping Centre

Cheers at Prinsep Street

NTUC Income O" ce

SOTA

Hotel Rendevous

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7BLISS HOTEL CONTEXT

People’s Park Centre

Chinatown Point

Cheers at Bliss Hotel

HDB Estate

MRT Entrance

Shophouse 5-ft way

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VIEW SHED

Perimeter of view shed: 570.71m

Patronage per day: 345

1

2

34

5

6

1

2

3

4

56

12

3

45

6

V Hotel Outlet Prinsep Street Outlet Bliss Hotel Outlet

65

321

4 65

321

4 65

321

4

Perimeter of view shed: 277.56m

Patronage per day: 365

Perimeter of view shed: 622.57m

Patronage per day: 579

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 di! erent, 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.

6. IN-DEPTH ANALYSIS FOR V HOTEL, PRINSEP STREET AND BLISS HOTEL OUTLETS

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� �� �� � � � � � � ��� �� � � �Even though the Bliss Hotel outlet has a

higher gravity index as compared to the

Prinsep Street outlet, the average daily

patronage is much lower. This is due to the

fact that the shortest path from the building

points to the Bliss hotel outlet may not be

the preferred path by walkers due to various

reasons. Hence, these shoppers would

actually visit other competitor stores in the

area instead. Furthermore, most shoppers

make unplanned stopovers to Cheers.

COMPETITIVE CLUSTERING

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: 13693g: 3936.795c: 4.37540s: 9810.326

r: 20878g: 13132.345c: 46.17749s: 17375.280

r: 30928g: 17077.151c: 5.43163s: 23124.473

The V Hotel outlet has an average daily

patronage of 345 people, which is the least

among the 3 outlets we have chosen. As

its gravity index is quite low at 3936.795,

it explains the lesser amount of people

arriving at that destination (weights taken

as the area, corresponding to the number of

people) after taking into distance decay.

The Prinsep Street outlet has the highest

amount of average daily patronage of 579

people, even though its gravity index is

lower than the Bliss hotel outlet. This might

be due to the composition of commercial

activities there, comprising of more o" ces

and shopping malls. The average building

heights at Prinsep are hence taller than

those near Bliss Hotel and the gravity index

does not take into account the height of the

buildings, resulting in a smaller value.

V Hotel Outlet Prinsep Street Outlet Bliss Hotel Outlet

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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 fi gures above were obtained with estimations made to the height of the buildings in the area according to our site obser-vation 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.

LocationTotal Commercial Area

(sqm)Patronage per day

V Hotel 170165.38 345

Prinsep Street 930322.10 579

Bliss Hotel 658805.00 365

NEARBY COMMERCIAL ACTIVITIES

Bliss HotelPrinsepV hotel

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7. BIVARIATE SCATTER-PLOTS

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 a! ect their patronage signifi cantly (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

the store.

Diagram 1: Relationship between proximity of

bus stop tapouts and patronage

Diagram 3: Relationship between

frequency of passers-by from bus stops

and patronage

Diagram 2: Relationship between proximity

of bus stop and patronage

ACCESSIBILITY

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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 tra" c fl ow 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 di" cult to justify the relative signifi cance 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 signifi cance.

To improve the research, we could have counted pedestrians passing by the respective outlets. This can be done at

di! erent 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 justifi ed 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.

1. Increase the glass to signage proportion

As shown in the images on the right, existing convenience shops at all

three locations have facades have a high proportion of glass. This allows

pedestrians to look at the variety of goods sold in the convenience stall.

The signage acts as a supporting element to the glass facade. It indicates

the chain’s name and colours. To break the transparency of the glass, some

convenience chains utilise printed decals on the glass facade.

Based on the view shed analysis, we realised that the visibility of the

convenience stalls were highly dependent on the visual impact of the

signage rather than the glass facade. This might suggest that the high

proportion of glass used in the facade discourages visibility. Therefore

by increasing the proportion of signage, the visual prominence of the

convenience shop is directly increased. The resultant view shed might be

greater.

However the high proportion of glass used in the facade does increase its

prominence at night. Light from within the convenience shop can be seen

from large distances. Nonetheless this occurs to many other shops with

similar proportion of glass facade. An increase in signage proportion would

also result in larger lit signage at night, giving a clearer indication of the

convenience shop’s presence.

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2. Reduce distance between convenience stores and transportation nodes

The accessibility of a convenience store has a direct relation to its

patronage. In our analysis of convenience stores, transportation

nodes served as the points of origin for pedestrians. Hence the

walkability of routes taken to convenience shops in terms of

distance, has a proportional e! ect on the potential patronage of the

shops.

By reducing the distances between transportation nodes and

convenience shops, the overall walkability and accessibility

is improved, which might result in increased patronage. The

accessibility of the Bliss Hotel branch could be improved by

introducing a new bus stop or shifting the current bus stop nearer to

its location.

Cheers - Bliss Hotel

Cheers - Prinsep

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3. Increase the width of walkways leading to shops

The walkability of pedestrian pathways along the existing convenience

shops can be improved to increase the patronage of shops. This

design intervention can take place at the Bliss Hotel branch, through

the increasing of the walkway width. This increases walkway capacity

for higher volumes of tra" c, which may potentially lead to greater

patronage. Alternatively, the perception of the walkway width could

be changed by reducing the thickness or porosity of the supporting

columns.

4. Increase regulatory distance between competitors to encourage a better distribution of convenience shops in an area

Based on the analysis of the distribution of the immediate market

among competitors in the same area, we understand that the relative

convenience of shops is highly dependent on the spatial distribution

competitors. Closer proxmity of competitors would indicate a smaller

overall service area, which implies higher competition between shops.

The introduction of a reulatory distance between competitors would

encourage a slightly more disperse spatial distribution of convenience

shops that might potentially widen the overall service area. The

decrease in competition and increase in proportion of captive market

with respect to individual service area might potentially increase

patronage.

Cheers - V Hotel

7-11

New

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 PlanningB: Planning and Design, 36, 450–465.

Proudfoot, M. J. (1937). City Retail Structure. Economic Geography, 13(4), 425–428.

Vandell, K., & Carter, C. C. (1993). Retail Store Location and Market Analysis: A Review ofLiterature. Journal of Real Estate Literature, 1, 13–45.

Eppli, M., & Benjamin, J. (1994). The Evolution of Shopping Center Research. Journal of RealEstate Research, Vol. 9(1), pp. 5–32 .

Eppli, M., & Shilling, J. (1996). How Critical is a Good Location to a Regional Shopping Center?Journal of Real Estate Research, Vol. 12(3), 459–469.

Sevtsuk, A. (2014). Location and Agglomeration: the Distribution of Retail and Food Businessesin Dense Urban Neighborhoods. Journal of Planning Education and Research, 1(21).