Track: Facilities Planning and Layout

Abstract

The shopping mall industry has rapid growth and it is highly attractive in the Philippines. Shopping malls compete with one another through their tenants to increase the malls’ foot traffic. This industry is driven by location, land area, mall tenants, anchor stores, and consumer behavior. The industry’s primary key success factor is tenant mix. However, as defined by Casazza, (1985), “there is no single optimal tenant mix for shopping malls” and tenant mix should be tailored to meet the location, size, demographic profile and consumer needs. In most cases a tenant mix for one mall could be a mistake for another. Dawson (1983) recommended that in a shopping mall non-anchor stores should not be clustered but dispersed throughout the mall because consumer focus on a shopping mall is changing as non-anchor stores and anchor stores are sharing the spot light as trend setters. In this study, researchers used this new erected shop:  King Doña Carmen, as the subject, to determine the tenant mix and positioning that will decrease the payback of this shopping mall. The methodology involves four phases, first, knowing the consumer behavior through survey questionnaire, second, identifying the optimal tenant mix through benchmark with competitors and the result of phase one, third, using linear programming to identify the number and types of store to be placed in each floor and to propose a new layout design using Systematic Layout Planning to improve rent income, and fourth, have a strategy timeline within the term lease of 20 years. It is concluded in the study that the result of the linear programming model to maximize the disposable income of consumers and facilities layout design through Systematic Layout Planning will reduce the company’s payback period by two years and increase its monthly rent income.