The impact of online shopping on shopping centres in Klang Valley, Malaysia

Abstract

Real estate has been a spectator to technology disruption for the past few years as many activities that used to be mediated by physical spaces within buildings are presently being shifted to virtual space. Markedly, this is the case in shopping as brick-and-mortar retailers are being disrupted by e-commerce. This study's premise is that it is not clear whether the emergence of online shopping would transform the physical retail property sector in Malaysia. To gauge the impact of the disruption on the physical space, this study conducted a survey among the shoppers in Klang Valley, Malaysia to determine the preference of shoppers to shop virtually or in the physical spaces at shopping centres. From the findings, it is found that the virtual space is not identified as an immediate and direct threat to physical space by shoppers. The synergies between the virtual space and physical space have to be explored so that the existing physical spaces can be designed to ensure sustainability with shoppers' preferences.