An empirical analysis of tenant location patterns near department stores in planned regional shopping centers

The location of a store within a mall can affect the sales and profits of the store and its neighbors, and those of the mall׳s owner/developer. Because the interests of retail stores and the mall׳s owner/developer with respect to choice of location might not coincide, bargaining power might come into play. To assess empirically whether relative bargaining power as between a retail store and the mall owner/developer affects store location within a center, we focus on locations of stores near the department store tenants of malls. Department stores might have the bargaining power necessary to affect which tenants are chosen as neighbors of the department store.Using data collected from 148 regional shopping centers (malls) in 2007 in the five westernmost provinces of Canada, we examine the relationship between variables that reflect store location patterns near a department store׳s entrance, and variables associated with the bargaining power of developers. We find that the density of stores selling comparison shopping goods is larger near department stores within centers that are older or have a larger gross leasable area. In addition, such density is negatively related to the number of department stores contained in the center. Because a shopping center׳s age, gross leasable area, and the number of department stores in a center are expected to be associated with a developer׳s bargaining power, the above findings are consistent with the hypothesis that the store location patterns near department stores depend on the relative bargaining power of the developer and the department stores.     

Adaptive resilience and the competition between retail and service agglomeration formats: an international perspective

This paper investigates the competitive relationship between dominant urban agglomeration formats (traditional ‘evolved’ town centres and ‘created’ shopping malls) and the drivers of competiveness in the form of key agglomeration resources (accessibility, parking condition, tenant mix, atmosphere). Based on a consumer survey (n, 2,161) across three distinctive European capital cities, covariance-based structural equation modelling reveals remarkably limited differences between formats in terms of the investigated drivers of competitiveness. Positive relationships of patronage towards both formats in all cities and the significant difference in why respondents patronise them suggest a partly complementary existence of the two types of agglomeration. We explain this apparent complementarity through the theory of adaptive resilience that has seen evolved agglomeration formats develop to provide a differentiated offer and consumer attraction compared with enclosed malls.     

Effects of shopping centre re-investments and improvements on sales and visit growth

PurposeEstablished shopping centres have in recent years experienced increasing competition due to a steady increase in newer and bigger centres as well as online shopping. How could existing centres compete on such terms?Design/methodology/approachThis analysis is based on interviews with 96 shopping centre managers in charge of malls that existed in 2008 and 2014, about their improvements during a three-year period and the effects on sales and number of visitors from one year before and one year after that period. The investments and improvements are structured and analysed mainly along seven common categories of shopping centre attributes recognised as determinants of customer satisfaction and/or patronage behaviour in existing research.FindingsThe results show significant positive relationships between shopping centres' improvements and the growth in sales as well as visit rates. The effects are, however, more significant for sales than visit growth. The forms of investment that yielded the greatest positive effect are improvements in physical dimensions such as access, atmosphere the retail mix. Increased investments in less physical dimensions such as promotions, entertainment, refreshments and service had little or no effect.Originality/valuePresent studies on centre renovations and improvements are merely case studies or studies of single cases, but this study deals with larger number of cases and long-term effects. In contrast to previous research on shopping centres and the role of satisfaction and patronage, with recommend balance between physical and non-physical aspects, this study highlights the importance of physical capital dimensions.     

Sources of customer satisfaction with shopping malls: A comparative study of different customer segments

Abstract

In spite of the growing importance of planned, centrally managed and enclosed shopping centres in the retailing sector, the understanding concerning sources and outcomes of customer satisfaction with this kind of shopping malls is limited. This paper develops and validates a conceptualisation of shopping mall satisfaction based on field studies in Sweden. The results show that eight underlying factors of varying character are important to customer satisfaction. These are selection, atmosphere, convenience, sales people, refreshments, location, promotional activities and merchandising policy. Furthermore, this study investigates whether sources of satisfaction differ in importance with respect to gender and age, generally two important variables for retail segmentation.     

Radius Restrictions on Retail Chains and the Similarity of Neighboring Shopping Centers

In Canada and the US, shopping center developers may impose ‘radius restrictions’ on tenants in their shopping centers, prohibiting tenants in a particular shopping center from opening another store within a certain radius. Whether a radius restriction is imposed on a chain will depend upon the relative bargaining positions of the chain and the developer. This paper presents an empirical analysis of regional shopping center composition in Canada, using variables that reflect the bargaining power of retail chains and shopping center developers. We find that large, well established, and growing chains are more likely to enter neighboring malls, consistent with the hypothesis that whether a chain enters neighboring malls depends upon its bargaining power. As well, we find that a chain is more likely to enter neighboring malls owned by large developers, consistent with large developers trying to keep retail chains out of the malls of small developers.     

Image transfer from malls to stores and its influence on shopping values and mall patronage: The role of self-congruity

Little research attention has been paid to the image transference from a shopping mall to its stores. The study reported in this article proposes an integrative model dealing with the image transference phenomenon from malls to stores and its implications in terms of creating value for shoppers and enticing mall patronage. Structural equation modeling is applied to data collected from shoppers in two urban North-Amercian shopping malls. The findings are broadly supportive of the proposed model. Mall image spills over the image of the stores located in the mall, and this occurs through a shopper's self-congruity mechanism. Furthermore, the mall's image dimensions influence hedonic shopping value through self-congruity. The stores’ image dimensions differentially influence utilitarian and hedonic shopping values assessments. Both types of shopping values are strong drivers of mall patronage. The study also discusses the implications of the findings as well as its limitations and directions for future research.     

Marketplace icons: shopping malls

ABSTRACT

This article considers shopping malls as marketplace icons. We suggest that shopping malls can be regarded as a significant symbol of consumption in an age of late modernity, and highlight key aspects of their development. The role of the shopping mall as an agent of creative destruction, influencing the nature of the retail landscape (especially with regard to the implications of – stereotypically suburban – malls for traditional urban retail provision), is discussed. We also consider the implications for notions of “place” (in terms of authenticity and meaning, etc.) arising from the fundamental characteristics of shopping malls, and end by suggesting that the shopping mall, as a marketplace icon, continues to dynamically and iteratively define and refine the ongoing interactions between consumers, the act of consumption, and place and space     

The geography of lifestyle center growth: The emergence of a retail cluster format in the United States

Just as geographers have given much attention to the evolution of shopping malls and power center retail complexes, it is equally important for research in business geography to continue to provide developmental evidence as new and distinctive retail cluster formats emerge and grow. The lifestyle center is a unique type of retail complex that has experienced much expansion across the United States yet has not received much research attention from location researchers. This study provides answers to basic questions, including the geography of lifestyle center development, the relationship of lifestyle center development to traditional mall activity, and the characteristics of lifestyle center market areas in comparison with the trade areas of their mall counterparts. The results show that lifestyle centers are developing in distinctive locations and markets within American cities that are not well-served by traditional malls. The study results also establish that lifestyle centers have a significant bias toward location in large cities, representing a clear contrast with traditional malls and their locational orientation toward smaller centers. The study summarizes these findings and argues that the emergence of the lifestyle center format has important implications for retailers, commercial property developers, and local economic development officials.     

Structural or Cultural: An Exploration into Influences on Consumers' Shopping Behavior of Country Specific Factors versus Retailing Formats

Abstract

This paper examines shoppers' behavior at regional shopping malls and neighborhood centers in two countries. Although some universal behavior patterns exist, shoppers' motivation, selection criteria and purchase behaviors were found to vary across cultures, and/or the type of shopping facilities. More importantly, the impact of the type of shopping facility on purchase and on shopping selection criteria, such as convenience, were found to be moderated by country factor, thus showing significant interactions of culture with types of shopping places.     

An empirical examination of clustering and dispersion within Canadian shopping centers

In this paper, data on the internal compositions of 90 planned regional shopping centers in the five westernmost provinces in Canada are used to examine the locational pattern of stores in shopping centers, to see whether these locations are consistent with exploiting demand externalities and the physical features of the mall. The empirical relevance of so-called “rules of thumb” for locating stores in shopping centers is also assessed. We find that there is clustering of service stores near mall entrances, and clustering of comparison shopping stores near corridor intersections and on the second floor of two-story malls. Clustering tends to occur in the ladies' wear, jewellery/fashion accessory, and unisex clothing store categories, facilitating comparison shopping. Clustering of stores in the service category facilitates multipurpose shopping. A regression analysis indicates that clustering may depend upon the size, age, and type of mall in question. Overall, results are consistent with consumer transportation/shopping costs and demand externalities driving the internal store location strategy of planned regional shopping centers.     

Shopping values of clothing retailers perceived by consumers of different social classes

With the advent of diverse forms of retailing, competition among retailers is becoming more intense. Due to this phenomenon, retailers now require marketing strategies that can differentiate themselves from other retailers. However, there is a lack of research on what kind of shopping values consumers perceive from the retailers they visit. This paper analyzes dimensions of shopping values consumers perceive and variations in perceived shopping values according to the types of clothing retailers, be it a department store, discount store, or internet shopping mall. More specifically, the paper analyzes the moderating effect of consumers’ different social class in perceiving the shopping values of each retailer. The results show that shopping value consists of five major constructs: experiential, diversional, reliable, efficient, and self-expressive shopping values. We also found that consumers perceive more experiential, diversional, and reliable shopping values in department stores and internet shopping malls than in discount stores, and self-expressive shopping value is highly perceived in department stores. However, consumers’ social class can moderate the perception of shopping values for department stores and internet shopping malls, but not for discount stores. Discount store shopping is likely to provide consistent shopping values to consumers of all classes. Based on these findings, managerial implications are then presented.     

Satisfaction of mall shoppers: A study on perceived utilitarian and hedonic shopping values

Declining consumer footfall and diminishing sales in Indian metro cities have guided the expansion of malls in cities of central India. Shoppers of these cities are unfamiliar with the mall concept and have limited exposure of shopping values in the past. The present research focused on the influence of utilitarian and hedonic shopping values on satisfaction of mall shoppers of central India Bhopal by establishing a proposed research framework based on 288 responses from two shopping malls, using utilitarian and hedonic dimensions of shopping values. Confirmatory factor analysis and structural equation modeling (SEM) are used to analyze and validate the proposed research framework. The result supports the relationship between shopping values and customer satisfaction, where both the shopping values show positive significant influences on customer satisfaction. Therefore this research paper would help mall owners to focus on these shopping values effectively and efficiently while planning malls in central India for gaining competitive advantage, attracting new customer and hold their profitable customers by enhancing customer satisfaction with shopping values in the current retail scenario.     

Shopping streets versus shopping malls – determinants of agglomeration format attractiveness from the consumers' point of view

The decline of shopping streets and the rise of shopping malls have been major trends in European retailing for decades. So far, research has failed to investigate this shift of agglomeration format (AF) patronage from a marketing perspective, including the consumers' point of view. This paper presents a theoretical discussion of the generic similarities and conceptual differences between shopping streets and shopping malls. Subsequently, the AF-specific characteristics perceived by consumers are compared and discussed with respect to their impact on agglomeration attractiveness. This leads to the development of a conceptual framework which is empirically tested using a web-based survey of almost 1000 consumers representing a typical urban central European retail market. The relative importance of nine distinctive AF characteristics on attractiveness was analysed using structural equation modelling. The findings proved to be quite similar for both shopping streets and shopping malls; the retail tenant mix and atmosphere had the highest relative importance.     

You’re dead to me,but should you be? Using a retail database to classify American malls by occupancy and sales and an extended analysis of dead and dying malls

ABSTRACT

The study uses a shopping center database to classify malls by occupancy and sales. A factor analysis is conducted and reduces the large number of variables to a smaller number of mall constructs. The constructs are used to predict mall group membership by occupancy and sales. The results indicate that population and income are important variables towards mall occupancy and sales. An analysis of dead malls follows in order to produce more novel information for the growing interest in dead and dying malls. It is found through a second discriminant analysis that the prototypical characteristics of dead malls include; smaller in size, less population and lower income market areas. There were varying effects of renovation dates, competition and market age. Overall, the study benefited from examining dead malls more closely and provides more groundwork for future dead mall studies.     

Managing transformations in retail agglomerations:Case Itis shopping center

Shopping centers have received much interest in recent years. This interest comes as many centers have struggled with declining footfall and the demise of many large anchor tenants. The bankruptcy of one anchor tenant has often led shopping centers into a downward spiral from which there is no return. In this paper, we provide an example of how a shopping center can develop sustainably in the transforming retailscape. Our findings highlight the role of the shopping center management in the success of contemporary shopping centers, particularly in crafting a tenant mix in which each tenant has a role to play.     

Impact of movie-watching on cross-selling revenue in shopping malls: Implications for post-pandemic recovery

The COVID-19 pandemic has prompted consumers to postpone in-store purchases and shift to online shopping, decreasing overall retail spending. As the global lockdown eases and shoppers return to offline stores and malls, shopping malls seek to facilitate in-store consumer experiences at entertainment facilities. Given the importance of entertainment facilities to the cross-selling revenue of shopping malls, we investigate the relationship between consumers' movie-watching and subsequent (hedonistic) grocery purchases. Our analysis of a panel database that includes transaction details at the consumer level shows that movie-watching is negatively correlated with consumer spending. Furthermore, consumers’ psychological states induced by content and contextual factors moderate the negative effect of movie-watching; after watching a fantasy (as compared to thriller) genre or watching a movie in a less crowded theater, consumers are more likely to make hedonic purchases at the supermarket. These findings provide theoretical and managerial implications for retail operators exploring cross-selling opportunities post-pandemic.     

Consuming postcolonial shopping malls

Abstract

Through a naturalistic inquiry, we interpret shopping malls in India as post-colonial sites in which young consumers deploy the West in an attempt to transform their Third World identities. Shopping malls in former colonies represent a post-colonial hybridity that offers consumers the illusion of being Western, modern, and developed. Moreover, consumption of post-colonial retail arenas is characterised as a masquerade through which young consumers attempt to disguise or temporarily transcend their Third World realities. This interpretation helps us to offer insights into transitioning retail servicescapes of the Third World, which in turn helps to improve extant understanding of consumer identity and global consumer culture.     

Shopping mall retailing: A bibliometric analysis and systematic assessment of Chebat's contributions

Shopping malls are unique retail environments offering individual consumption experiences within a holistic retail ecosystem. Drawing on a bibliometric analysis and a systematic review of 31 articles, this research synthetizes Jean-Charles Chebat's contributions to the shopping mall literature. Findings highlight four core clusters of the shopping mall literature, namely spatial wayfinding, atmospherics, consumer differences across shopping mall experiences, and shopping mall consequences. The newly developed Shopping Mall Experience Framework extends Chebat's research proposing additional elements of interest for current mall retailing research. Managerial implications offer practical guidance on successfully designing and maneuvering shopping malls of the future.     

The death and life of shopping malls: an empirical investigation on the dead malls in Greater Lisbon

At a moment when new retail formats are emerging and consumers are changing their preferences, it is vital to reflect on the existing shopping malls, which are being challenged in European cities. With their vitality endangered, many become dead malls, a phenomenon that has increased over recent years. With this in mind, the objective of this study is to explain the factors behind the proliferation of dead malls through an empirical analysis of the evolution of shopping malls in Greater Lisbon, Portugal. We combine three sets of retail change theories (cyclic, conflict and environmental) with current perspectives on the resilience of urban retail. We expect that our study will contribute toward current debates on the resilience of shopping malls. The methodology of our study comprises two stages. First, we updated the Greater Lisbon shopping mall database and analysed the growth and decline of each shopping mall type over the last 44 years. In a second phase, we conducted a fieldwork survey on 150 shopping malls, which allowed us to identify and profile the dead malls of Greater Lisbon. Our results show that dead malls match declining shopping mall types, and we discuss four factors affecting the resilience of shopping malls.     

Shopping centre clusters: Competition or synergies? The case of the region of murcia (Spain)

Since their emergence in the mid 1950s, the role of shopping centres has evolved and they have now become key articulating elements of urban and metropolitan peripheral areas. In Spain, the opening of new out-of-town shopping centres intensified after the year 2000, thanks to an increased area dedicated to new leisure-related uses and activities. This process has been particularly prevalent in the regions in the south-east of Spain such as Alicante-Elche, Murcia and Valencia which are supported by high capacity regional and national road networks. In the case of Murcia, of its ten shopping centres, three of them, Thader, IKEA and Nueva Condomina, are very close to one another, and two of them - Thader and IKEA - are just 650 m apart. The objective of this study is to analyse whether this proximity between shopping centres generates synergies among them based on agglomeration economies or, on the contrary, whether it gives rise to competition between the different centres. For the purpose of this study, these highly specialised shopping centres have been considered and a field study has been conducted based on the administration of surveys among the customers of these shopping centres. The results show that the synergies with those shopping centres which have a diverse retail mix seem to be linked to those users who have a longer journey time and visit these shopping centres more frequently. On the other hand, in the case of non-regular or sporadic customers of these large, highly specialised shopping centres, we can observe direct competition with the rest of the shopping centres, revealing an absence of agglomeration economies.