This document summarizes a study that evaluates the suitability of locations for new hypermarkets in Kuala Lumpur, Malaysia using GIS and the gravity model. The study identifies six potential new hypermarket sites, then calculates the gravitational attraction of each site using factors like population, distance, and retail space. The site with the highest average attraction score is considered the most suitable location. Maps are generated showing the gravity surfaces of the different proposed hypermarket sites. The goal of the study is to determine suitable new hypermarket locations that consider demand and need.
The seven principles of persuasion by Dr. Robert Cialdini
GISanalysis_hypermarketlocation.ppt
1. 1
INTEGRATING GIS AND GRAVITY MODEL IN
EVALUATING LOCATION SUITABILITY OF
HYPERMARKETS
AHMAD NAZRI MUHAMAD LUDIN
MOHAMAD EDIWAN AHMAD
NORADILA RUSLI
FACULTY OF BUILT ENVIRONMENT
3. 3
DEFINITION OF HYPERMARKETS
A VERY LARGE RETAIL STORE OFFERING THE
PRODUCTS OF A SUPERMARKET AND THE
MERCHANDISE OF A DEPARTMENT STORE.
OFFERS QUALITY GOODS, CONVENIENCE,
PRODUCT VARIETY AND LONG OPERATING
HOURS
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ISSUES ON HYPERMARKET ALLOCATION
• NEW HYPERMARKETS OFTEN GENERATE TRAFFIC PROBLEM
AND CAUSE ADVERSED ENVIRONMENTAL IMPACT
• NEGATIVE ECONOMIC IMPACT ON SMALL SCALE RETAILERS/
SUNDRY SHOP
• NO CLEAR GUIDELINES IN THE APPROVAL OF HYPERMARKETS
PARTICULARLY IN APPROVING THE SITE/ LOCATION
• OFTEN CREATE SOCIAL, COMMUNITY AND ENVIRONMENTAL
ISSUES
• NEVERTHELESS, IT ALSO HAVE POSITIVE QUALITY
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SCENARIO ON HYPERMARKET
• INTRODUCED EARLY 1980 IN MALAYSIA
• THERE ARE MORE THAN 50 STORES NATION WIDE AND 50% ARE
LOCATED IN THE KLANG VALLEY REGION. KUALA LUMPUR, THE
STUDY AREA IS LOCATED IN THIS REGION.
• BEING MENTIONED IN THE NATIONAL ECONOMIC PLAN, ISSUES THAT
NEED TO BE ADDRESS
• USUALLY LOCATED AT URBAN FRINGE CLOSE TO RESIDENTIAL AREA
• MORE THAN 45% ARE INTERNATIONAL OPERATORS
• CHANGE THE LANDSCAPE OF A NEIGHBOURHOOD BUT SOMETIMES
ACT AS CATALYST FOR OTHER NEW DEVELOPMENT
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WHY USE GIS?
• THE CALCULATION OF THE GRAVITY MODEL LIMITED TO
PROVIDING THE STRENGTH OF ITS ATTRACTION
• GIS OFFER THE SPATIAL CONTEXT OF THE STRENGTH
• DATA INPUT IN GIS ALSO PROVIDE THE USER TO MAKE AN
EARLY ASSESSMENT ON THE STUDY AREA SPATIALLY (NOT
LIMITED TO ASPATIAL DATA ONLY)
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DATA LAYERS
Boundry
Transportation
Residential
Population
Land use
ANALYSIS MODEL OF
HYPERMARKET SUITABILITY
LOCATION BASED ON GRAVITY
MODEL
Consumer’s Retail
Expenditure
Vektor Data Environment
Raster Data Environment
HYPERMARKET LOCATION
ANALYSIS MODEL
Outside
Neighbourhood
Centre
Proximity to
Main Roads
Population
Catchment
Directed
Growth Area
Distance to
Existing
Hypermarket
Proposed
Site
• TO SELECT POTENTIAL SITES
FOR HYPERMARKETS
• TO ASSESS SUITABILITY OF
THE SITES USING GRAVITY
MODEL
METHODOLOGY OF THE STUDY
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CRITERIA IN SELECTING POTENTIAL
NEW HYPERMARKET SITES
• DISTANCE FROM MAIN ROAD ( <500 M). THERE ARE 8 ROAD
HIERARCHIES BUT THIS STUDY USE ONLY HIGHWAY, FEDERAL
ROAD AND STATE ROAD ONLY.
• LOCATION BASE ON DIRECTED GROWTH AREA STRATEGY
GAZETTED IN THE KUALA LUMPUR STRUCTURE PLAN
• NOT WITHIN A NEIGHBOURHOOD UNIT OR URBAN CENTRE (>3.5 KM)
• LOCATED WITHIN AN ADMINISTRATIVE/ PLANNING AREA HAVING
MINIMUM POPULATION OF 350,000
• DISTANCE FROM CURRENT HYPERMARKET LOCATION
• MINIMUM LOT SIZE (COMPLY WITH HYPERMARKET FLOOR AREA
MINIMUM REQUIREMENT & PLOT RATIO REQUIREMENT BY DBKL)
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THE GRAVITY MODEL
THE MODEL MEASURES INTERACTION BETWEEN TWO
‘POPULATION’ CENTRES BASED ON NEWTON’S LAW OF UNIVERSAL
GRAVITY
CROSS (1975) STATE THAT THE MODEL IS ALSO KNOWN AS
INTERACTION MODEL DUE TO ITS APPROACH TO STUDY THE
STRENGTH OF DIRECT RELATIONSHIP BETWEEN KNOWN
PARAMETERS
THE ORIGINAL EQUATION HAS BEEN CHANGED TO ACCOMMODATE
THE TYPE OF STUDY. E.G THE REILY’S GRAVITY MODEL OFTEN
USED TO STUDY THE RELATIONSHIP BETWEEN COMMERCIAL
CENTRES
HAMILTON (2003) IDENTIFIED THAT THE MODEL HAS BEEN APPLIED
IN POPULATION MIGRATION, FLOW OF PUBLIC TRANSPORT
PASSENGERS, FLOW OF COMMODITY, TELEPHONE TRAFFIC
SYSTEM ETC.
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Sj = retail expenditure for centre j
Ci = consumer expenditure of zone i
Fj = Floor area for centre j
dij² = distance between zone i and
centre j
Sj =
Ci Fj / dij²
Σ Fj / dij²
THE EQUATION
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PARAMETER USED IN THE GRAVITY
MODEL
• COMMERCIAL GROSS FLOOR AREA
• POPULATION SIZE OF THE NEIGHBOURHOOD
• DISTANCE OF THE HYPERMARKET WITH NEIGHBOURHOOD CENTRE
• HYPERMARKET MARKET PRICE
• CONSUMER EXPENDITURE
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FLOOR AREA
THE HYPERMARKET FLOOR AREA WAS DETERMINED BY USING THE
MINIMUM STANDARD SET THE MINISTRY OF DOMESTIC TRADE AND
CONSUMER AFFAIRS MALAYSIA
IDEALLY THE PLOT RATIO AND SIZE OF THE LAND PARCEL SHOULD BE
CONSIDERED FOR THIS STUDY
A MINIMUM STANDARD OF 10,000 SQ. METRE WAS SET FOR THE STUDY
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STRAIGHT LINE SURFACE WAS
USED TO CALCULATE THE
AVERAGE DISTANCE OF THE
PROPOSED HYPERMARKET
WITH POPULATION CENTRES
IT CALCULATE DISTANCE FROM
EVERY CELL TO NEAREST
SOURCE, COMPARED TO
BUFFER WHICH ONLY CREATE
PREDETERMINED ZONE
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Hypermarket Average Distance (meter)
Makro Selayang 11,811.97
Carrefour Wangsa Maju 11,700.79
Giant TTTDI 11,066.21
Carrefour Jln Peel 9,362.8
Xtra Cheras 9,318.86
Carrefour Mid Walley 8,854.81
Makro Cheras 10,558.51
Giant Tmn Connaught 10,9536.2
Carrefour Endah Parade 11,095.52
Hypermarket Alternatif 1 13,237.42
Hypermarket Alternatif 2 9,399.36
Hypermarket Alternatif 3 9,485.37
Hypermarket Alternatif 4 9,070.29
Hypermarket Alternatif 5 10,935.15
Hypermarket Alternatif 6 11,636.51
MEAN DISTANCE FOR EACH HYPERMARKET WITH
POPULATION ZONE
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CONSUMER EXPENDITURE
(BASED ON TYPE OF
HOUSING UNITS).
THE DATA ON CONSUMER
EXPENDITURE WAS NOT
AVAILABLE.
THE RESEARCH ASSUMED
THAT TYPE OF HOUSING
REFLECT LEVEL OF
HOUSEHOLD INCOME ,
AND THUS EXPENDITURE
ON RETAIL CAN BE
ESTIMATED BY PROJECTING
DATA AVAILABLE FROM
DEPT. OF STATISTICS
MALAYSIA
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Year Per Household (RM) Per Kapita (RM)
1999 26,792.00 5,808.40
2000 29,987.00 6,601.90
2001 29,031.00 6,379.50
2002 29,553.00 6,526.90
2003 32,107.00 7,169.80
Source: 1999-2002 Euromonitor International from official sources (Department of Statistics Malaysia),trade press (including The Edge,
The Star, Retail Asia), 2003 Euromonitor International estimates
CONSUMER SPENDING ACCORDING TO HOUSEHOLD AND
PER CAPITA 1999-2003
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Hypermarket Average Attraction Total Sale(RM)
Makro Selayang 0.080451 1,893,168.10
Carrefour Wangsa Maju 0.065674 1,545,436.63
Giant TTTDI 0.082168 1,933,572.45
Carrefour Jln Peel 0.056937 1,339,838.07
Xtra Cheras 0.055837 1,313,952.93
Carrefour Mid Walley 0.068613 1,614,597.00
Makro Cheras 0.060848 1,431,871.49
Giant Tmn Connaught 0.065519 1,541,789.18
Carrefour Endah Parade 0.069546 1,636,552.30
Hypermarket Alternative 1 0.064626 1,520,775.15
Hypermarket Alternative 2 0.066143 1,556,473.11
Hypermarket Alternative 3 0.060347 1,420,081.98
Hypermarket Alternative 4 0.060578 1,425,517.86
Hypermarket Alternative 5 0.069980 1,646,765.16
Hypermarket Alternative 6 0.072734 1,711,572.12
Total 1 23,531,940.00
ESTIMATED CONSUMER SPENDING/ EXPENDITURE FOR
EACH HYPERMARKET
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Fij =
10,000 (m²)
Straight line surface² (dij²)
Proposal Hypermarket Average Distance Fij
Hypermarket Alternative 1 13,237.42 0.000057068
Hypermarket Alternative 2 9,399.36 0.000113189
Hypermarket Alternative 3 9,485.37 0.000111145
Hypermarket Alternative 4 9,070.29 0.000121550
Hypermarket Alternative 5 10,935.15 0.000083628
Hypermarket Alternative 6 11,636.51 0.000073851
Matrix for Fij
Σ Fij = F1 + F2 + F3 + …. + F15
CALCULATING THE GRAVITY STRENGTH
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Name Average Attraction
Makro Selayang 0.080451
Carrefour Wangsa Maju 0.065674
Giant TTTDI 0.082168
Carrefour Jln Peel 0.056937
Xtra Cheras 0.055837
Carrefour Mid Walley 0.068613
Makro Cheras 0.060848
Giant Tmn Connaught 0.065519
Carrefour Endah Parade 0.069546
Hypermarket
Alternative 1 0.064626
Hypermarket
Alternative 2 0.066143
Hypermarket
Alternative 3 0.060347
Hypermarket
Alternative 4 0.060578
Hypermarket
Alternative 5 0.069980
Hypermarket
Alternative 6 0.072734
Total 1
AVERAGE VALUE OF GRAVITATIONAL ATTRACTION FOR
ALL HYPERMARKETS
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FINDINGS
ALTERNATIVE SIX SHOWS THE HIGHEST POTENTIAL SITE IN TERM OF
LOCATION AND PROJECTED PROFIT (FURTHER ANALYSIS SHOWS THAT
THE SITE ARE ADJACENT TO NEW RESIDENTIAL AREA & LIMITED
FACILITIES)
THE GRID BASE METHOD PROVIDE MORE MEANINGFUL RESULTS
COMPARED TO BASIC COMMAND IN GIS ANALYSIS (BUFFERING,
OVERLAY AND SELECT)
THIS STUDY RECOGNISED, IT SHOULD TAKE DETAIL CONSIDERATION
ON:
• FINANCIAL ASPECT OF PROPOSAL IN DETAIL SUCH AS
CALCULATING CASH FLOW
• LAND VALUE
• VARIATION OF PLOT RATIO BETWEEN PLANNING ZONES
• AREA OUTSIDE THE BOUNDARY OF STUDY AREA
WE HOPE TO IMPROVE THE TECHNIQUE PARTICULARLY BY TAKING INTO
ACCOUNT THE VARIATION OF PLOT RATIO FOR EACH PROPOSED LAND
PARCEL
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THE STUDY PROVIDE TRADITIONAL PLANNING MODEL AN ADDED
FEATURE/ DIMENSION AND THUS PROVIDE BETTER UNDERSTANDING
OF THE ‘REAL WORLD’
THE TECHNIQUE ALSO ALLOWS DIRECT COMPARISON (LOCATION,
PATTERN AND INFLUENCED) BETWEEN HYPERMARKET SPATIALLY
PROVIDE DECISION MAKERS AN ALTERNATIVE TECHNIQUE/TOOL IN
ASSESSING LOCATION FEASIBILITY AND APPROVAL FOR NEW
HYPERMARKETS
CONCLUSION
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THANK YOU FOR YOUR ATTENTION
AHMAD NAZRI MUHAMAD LUDIN
UNIVERSITI TEKNOLOGI MALAYSIA
b-anazri@utm.my
