Emergence of Virtual Space: Impact on Shopping Malls in Klang Valley, 

EMERGENCE OF VIRTUAL SPACE: IMPACT ON SHOPPING MALLS IN KLANG VALLEY, MALAYSIA

 

 Project team :

Leader :

Prof Teck Yong Eng (University of Reading Malaysia) (Co -Pi)

Researchers :

Assoc Prof Dr Yasmin Mohd Adnan (Universiti Malaya) (Co -Pi)

Assoc Prof Dr Patrick Lecomte (University of Reading Malaysia)

Mr Chin Kee Liang (University of Reading Malaysia)

ABSTRACT

The present study aims to explore the impact of the emergence of virtual space on the demand for physical retail space. The study’s premise is that it is not clear whether the emergence of online shopping would transform the physical retail property sector in Malaysia. In particular, the survival of brick-and-mortar retail properties such as shopping malls could be threatened by the virtual space or online e-commerce.

The study is conducted in two stages. In the first stage, a comprehensive literature review aims to identify the factors that drive online and physical shopping. The second stage involves identifying shopper preferences for online shopping and/or physically at shopping malls. Concurrently, views from stakeholders in the shopping malls business were sought with the objective of exploring their preference on these channels.

The findings suggest that virtual space is not identified as an immediate and direct threat to physical space by shoppers as well as retail mall stakeholders. Although physical retail space still has its attraction, the importance of omnichannel in shopping malls should not be disregarded as omnichannel retail strategies can end up fostering sales in physical space while virtual space is used to attract more footfall to retail outlets. These synergies indicate that virtual space and physical space can be made to work hand in hand.

Keywords: Virtual Space, Online Shopping, Physical Space, Shopping Mall