The more,the merrier? An exploratory study into managing channels in UK financial services

Abstract

Following the emergence of retail parks in the late 1970s in Britain, they have grown in number, scale and degree of retail specialisation. Some continue to form concentrations offering primarily ‘bulky goods’ shopping, while others have diversified to offer traditional ‘high street’ functions from stores indistinguishable from their town and city centre equivalents. Consequently, in some cases the emergence of new ‘high streets’ in the suburbs can be posited. In view of the potential impact such developments might have on traditional shopping centres, this study reviews the development of retail parks in Britain in recent years, and examines the commercial impact of a retail park in the process of transition towards a suburban ‘high street’. Evidence from surveys in 2003 and 2004 of the Fforestfach Retail Park in the greater Swansea area indicates that the transition towards a suburban ‘high street’ is beginning to impact significantly on traditional shopping centres of all types. It was evident that even small additions of ‘high street’ functions between the two recent survey dates elicited a statistically significant strengthening of their trading impact. Consequently, it is suggested that upgraded retail parks are likely to become stronger competitive threats to the full range of district, town and city centres if ‘high street’ functions continue to be added to retail parks.     

Substitution or complementarity? How the Internet changes city centre shopping

The rapid expansion of the Internet has spawned a growing body of literature on the impact of online shopping (here called e-shopping) on physical shopping. This paper explores the impact of e-shopping on shopping at city centres in the Netherlands for 25 retail categories, using a sample of 3200 Internet users. Results indicate that in the short run, e-shopping is unlikely to have a significant effect on purchases at city centre stores. In the long run, however, e-shopping may well substitute for going to actual stores. Furthermore, consumers today frequently consult the Internet before making a purchase from a store, and the city centre constitutes a source of information before an online purchase is made. The impact of these events, however, differ largely among the various retail categories and types of Internet shoppers.     

Central place practice: shopping centre attractiveness measures,hinterland boundaries and the UK retail hierarchy

Christaller's (Central Places in Southern Germany (translated by Baskin C (1966)), Prentice-Hall, Englewood Cliffs, NJ, 1933) well-known and much criticised ‘central place theory’ was based on classical, arguably unsustainable, economic assumptions such as the uniformity of consumers and travel. Nevertheless, it has been claimed that the emergence of shopping areas in UK towns could largely be explained in terms of central place principles (Retail Location: A Micro-Scale Perspective, Aldershot, Avebury, 1992). Brown drew support from the example of the retail hierarchy of Cardiff (UK, Store Location and Store Assessment Research, Chichester, Wiley, 1984): a town centre core radiating progressively further out with greater numbers of district centres, neighbourhood centres and finally local centres. Christaller's theory was based on rigid ‘laws of distribution of central places’ and ‘laws of settlement’ which ‘often determine[d] with astonishing exactness, the location of central places’ in southern Germany. Guy considered that for useful application to UK retail, a more flexible interpretation was needed and that strict economic assumptions could be relaxed in a more pragmatic approach. The ‘classical’ approach fails to account for the positions and hinterland (or catchment area) boundaries of modern out-of-town regional shopping centres. Except in defining the components of places at various levels in the hierarchy, Christaller did not even consider the attractiveness of shopping areas in consumer choice. A number of other authors have investigated various measures to define positions in the retail hierarchy. In the Cardiff example, Guy used retail sales floor area as a surrogate measure. Systems have been proposed based on numbers and status of retail outlets (The New Guide to Shopping Centres of Great Britain, Hillier Parker, London, 1991; Shopping Centres, Mintel, London, 1997; J. Property Res. 9 (1992) 122–160; J. Property Res. 9 (1985) 122–160). This paper evaluates the authors’ empirically based measurement system for attractiveness that can be applied to out-of-town as well as in-town shopping centres. The approach adapts previous simple systems based on retailer counts. These have been combined in attractiveness measurements applied to definitions of position in the hierarchy. Results support the prediction of central place hinterland boundaries based on the authors’ attractiveness measures and adaptation of (The Law of Gravitation, Knickerbocker Press, New York, 1931) ‘Law’. The data fit exemplar published empirical data on shopping centre hinterlands more closely than do the commonly used drive-time isochrones.     

Attraction of power shopping centres

This paper examines shoppers at two power centres in the U.S.A. to determine why they do or do not engage in cross-shopping within the centre and the demographic and situational characteristics and shopper behaviours which may distinguish the cross-shopper from the non-cross-shopper. The paper also examines the spatial extent of power centre trade areas in order to position this new type of centre within the traditional shopping centre hierarchy. Cross-shoppers are driven by the same motives as shoppers in other centres. The most important reason for not cross-shopping is 'shopping store for a specific item', indicating the importance of destination shopping. Cross-shoppers and non cross-shoppers appear to be a relatively homogeneous group, differing only in terms of gender and travel distance. Trade areas of power centres approach the size of those for regional centres.     

Towards rebuilding the highstreet: Learning from customers’ town centre shopping journeys

Patronage in town centres has been fluctuating over the past few years, indicating that consumers are buying elsewhere in pursuit of better and more fulfilling shopping experiences. This is concerning as patronage is considered an indicator of high streets vitality and viability. To help understand the changing patterns of patronage, especially related to the growth in online retail spending, this study sheds light on key touchpoints that influence the town centre shopping experience. Using the customer journey framework and drawing insights from datasets of two central UK regions, we provide new contribution to town centre research by capturing significant and specific physical and digital touchpoints in the town centre shopping journey, thus developing our understanding of the determinants of the town centre shopping experience. Consequently, this work provides recommendations for town centre management to help improve town centre patronage by developing customers’ experience with shopping-specific touchpoints.     

The impact of the deregulation of retail hours on shopping trip patterns in a mall hierarchy: an application of the RASTT model to the Sydney Project (1980–1998) and the global vacant shop problem

The impact of the deregulation of trading hours on trips to planned shopping centres is studied using the retail aggregate space-time trip (RASTT) model, where changes in consumer spatial behaviour are analysed at three malls in seven year periods (1980/82, 1988/89, 1996/98) in Sydney, Australia (The Sydney Project). After effective deregulation in 1992, the subsequent repeat samples in a hierarchy of shopping malls show significant structural change in only the afternoon samples at community and regional planned shopping centres. The results show a substantial increase in the attractiveness of planned shopping centres over traditional retail centres, where less consumers are shopping locally. There was a shift in spatial demand towards Sunday for ‘small centre’ behaviour and the appearance of high frequency regular trips to the regional planned centre. The RASTT model suggests that these changes in the structure of consumer behaviour are a result of moving the time boundary to seven days-a-week shopping at these centres. These structural changes may account for the on-going long term vacant shop problem that has manifested itself under shopping hour liberalisation in south east Australian, British and Canadian traditional retail hierarchies in the 1990s.     

Consumer perceptions of corporate social responsibility in town shopping centres and their influence on shopping evaluations

This paper investigates the effects of retailer and town centre actions to demonstrate corporate social responsibility (CSR) on consumers’ evaluations of town shopping centres. Examples of CSR actions are donations to charities, support for schools or cultural or sports events and demonstrations of concern for the natural environment. Recent research literature suggests such actions can have positive effects on the attractiveness of retail stores, and hence are a potential basis of competitive advantage. This paper investigates if similar effects occur for evaluations of town shopping centres. Hypotheses about the mediating and moderating effects of CSR are tested in two conjoint experiments conducted on shoppers in the UK. The results shows that the explanatory and predictive performance of destination choice models for shopping can improve if they include indicators of a centre's CSR performance but the effects of CSR attributes are small compared to the effects of non-CSR attributes.     

The ‘online high street’ or the high street online? The implications for the urban retail hierarchy

The U.K. has the greatest proportion of online sales in Europe. This study seeks to explore the differential effects of online retailing on the (evolving) hierarchy of shopping centres by examining current trends and underlying forces. The overall objectives of the paper are to qualify and explore the influence of online retailing in the decision-making processes of leading retailers today; and to assess how virtual influences become manifest in the tangible built environment and have impacted the retail hierarchy? It differentiates online retail trends by sector and retailer size, and examines the consequences for different types of shopping centres. The empirical research is based on the changing location of stores of a major fashion retailer and interviews with three of Britain’s leading retailers that have seen the more substantial increase in online turnover in recent years. Major retailers are found to have integrated online offerings, such as click and collect, into a ‘multi-channel’ retailing approach. Online retailing has therefore become an inherent and central element within large retailers’ business and therefore real estate strategies, with considerations such as online marketplace penetration and possible ‘cannibalisation’ coming to the fore in decision-making about store location. Online retail sales are, to a degree, drawing sales away from shopping centres but its impact on the existing shopping hierarchy is largely to reinforce established long-term trends driven by the motor age and the shift to out of town retailing. This is symbolised by the largest ‘high street’ fashion retailer now having more branches in retail parks than town centres. Out of town shopping centres for example are benefitting because of the ease of goods collection offered by these locations.     

Tenancy development in new shopping centres: implications for developers and retailers

This paper focuses on an investigation of the growing management and marketing problem of tenancy development in new shopping centres. The paper notes the critical importance of tenancy development in an increasingly competitive market, and reports on a survey of thirty shopping centres which examines patterns of tenancy development in the early crucial years of their growth. The survey highlights significant tenancy problems facing some developers/landlords, with major implications for rental income growth, retail synergy and sales growth, and for future shopping centre marketing strategies.     

In the city: The John Lewis partnership and planned shopping centres

A defining feature of large-scale retailing during the period 1950–1980 was the emergence and evolution of planned shopping centres. During the 1950s, department stores in the United States were in the vanguard of this phenomenon. In contrast, British department stores continued operating from traditional high street sites, and had limited opportunities for expansion within planned shopping centres until the 1970s. This paper addresses the connection between department store retailing and the development of the planned shopping centre in Britain from the perspective of one enterprise: the John Lewis Partnership. The article demonstrates that the Partnership was willing to operate department stores within centrally located shopping centres, but was circumspect about operating stores in non-centrally located shopping centres.     

Consumers’ perception of store image of joint venture shopping centres: first-tier versus second-tier cities in China

Studies on consumer behaviour and the modelling of attributes representing store image of shopping centres in the context of a developed country have been the focus of many researchers. In contrast, although China has the largest consumer market in the world, the consumer behaviour and consumption psychology of this enormous market remain relatively unknown due to a previously “close-door” policy as well as a high degree of government intervention within the retail sector. This paper discusses the unique nature and development of the retail industry in China, and formulates a model to represent the store image of joint venture shopping centres, which are the only approved form of direct foreign investment into China's retail sector. Research on store image of shopping centres in the west as well as in China has been applied in the formulation of the model, which consists of 21 attributes. The relative importance of these 21 shopping centre image attributes is subsequently analysed between consumers in a first-tier and a second-tier city in China. By being the first of its kind to reflect on China's retail market and its joint venture shopping centres, and to compare the consumer behaviour within different levels of cities in China, this paper provides both researchers and retailers with a better insight and understanding into the psychology of Chinese consumers, and the retailing business in China.     

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.     

The restorative potential of shopping malls

This article illustrates that shopping centres can promote individual and societal well-being by offering shoppers restorative servicescapes. The study links attention restoration theory to biophilic store design, thus merging greenery with physical environments, such as urban shopping centres. To date, natural and environmental psychologists have empirically explored the positive impact of green areas on human mental and physical health. This article expands on these findings and shows that shopping centres that incorporate green elements into retailing areas may promote good health. In a mall shopping centre possessing restorative qualities, similar to natural settings, the study empirically demonstrates that shoppers who perceive restorative qualities hold favourable attitudes and exhibit positive behaviours towards the shopping centre. Theoretical and practical implications for enclosed malls are discussed.     

Developing a framework to improve virtual shopping in digital malls with intelligent self-service systems

Growing movements to urban places, increasing unemployment, decreasing buying power, rising real estate cost and demanding consumers for convenience and price are creating challenges for retailers. This paper reviews a sample list of retail channels, and proposes a systematic framework for conceptualizing the data-driven, and mobile- and cloud-enabled intelligent self-service systems to improve virtual shopping. With adoption of intelligent self-service systems, – more service oriented, more instrumented (from sensors to smart phones for monitoring consumers׳ behaviors), interconnected (patterns of interactions), and intelligent (algorithms help recognize patterns) – retail organizations can provide more cost effective quality retail service experiences to consumers.     

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.     

Estimating attractiveness,hierarchy and catchment area extents for a national set of retail centre agglomerations

There is a legacy of research aiming to conceptualise and empirically estimate retail store catchment areas, however, a dearth that frames such considerations within the context of retail agglomerations and their position within regional or national networks. As a result, this paper provides an extension to single store or shopping centre retail catchment estimation techniques, and presents an empirically specified and tested production constrained model for a national network of retail centres in the UK. Our model takes into account the spatial interactions between potential customers and a hierarchical network of retail centres to estimate patronage probabilities and catchment extents. The model is tested for a large metropolitan area vis-à-vis real world shopping flows recorded through a survey of shoppers. Finally, we present an open source software tool for custom model fitting, and discuss a range of theoretical and empirical challenges that such a model presents.     

A segmentation of Turkish consumers based on their motives to visit shopping centres

This paper aims to contribute to the literature by providing a segmentation of Turkish consumers based on their motives for visiting shopping centres. First, we identified the motives that Turkish consumers had for visiting shopping centres and then we used those motives to segment consumers. Data were collected through a survey from 390 participants living in the six largest cities in Turkey. First, the results showed that Turkish consumers had five groups of motives when it comes to visiting shopping centres. The results of a two-step cluster analysis used for segmentation revealed four distinct segments of Turkish shopping centre visitors. Those segments were named as serious consumers, recreational consumers, enthusiast consumers, pragmatic consumers. These findings suggest that Turkish shopping centre managers need to recognize that Turkish consumers are not a homogeneous unit when it comes to visiting shopping centres. Finally, academic and managerial implications of our findings are discussed.     

Deriving performance indicators from models of multipurpose shopping behavior

Multinomial logit models have been widely used for predicting and analyzing spatial shopping behavior of consumers. The models typically used in applied settings do not account for impacts of multipurpose shopping behavior on retail system performance. This study focuses on a recent multipurpose shopping model that has favorable properties for use in applied settings. The purpose of the study is to derive indicators of center performance and travel demands from this model. An application shows how the multipurpose model can be estimated based on survey data and which information can be derived from it. Comparison with a conventional single-purpose shopping model indicates that spatial agglomeration impacts as predicted by the model can have substantial meaning for retail impact studies. Therefore, it is concluded that the more complicated models have the potential of improving information in retail planning and analysis.     

Conceptualizing smart shopping with a smartphone: implications of the use of mobile devices for shopping productivity and value

This conceptual paper addresses the implications of the use of mobile devices in an omni-channel retail environment for consumer shopping productivity and shopping value. We reconsider the existing literature on shopping productivity and adopt the perspective of bounded rationality paradigm rather than the classical assumption of customers’ perfect rationality. It enables us to consider both maximizers (those who seek the best outcome) and satisficers (those who stop their information search as soon as an appropriate option is available). After a thorough review of shopping productivity literature, we propose a conceptualization of shopping productivity including four dimensions: time/effort savings, right purchase, money savings, and hedonic benefits from shopping. We then present a conceptual framework relating use of mobile devices in an omni-channel retail environment to consumer shopping productivity and shopping value. The type of goods and consumer tendency to maximize are included in the framework as possible antecedents of the use of mobile devices in an omni-channel retail environment and moderators of the relation between consumer shopping productivity and shopping value.     

Consumer shopping value: An investigation of shopping trip value,in-store shopping value and retail format

Although delivering value is the key for retailers to create new competitive advantages, the literature on consumer shopping value is fragmented and findings are inconsistent. This study aimed to understand consumer shopping value in-depth by examining consumer shopping processes and experiences in two retail formats: mass merchandisers and department stores. This study conceptualizes consumer shopping value as having two components: shopping trip value and in-store shopping value. Shopping trip value is originated by fulfillment of general shopping motivations, and in-store shopping value stems from retail elements that create in-store shopping experiences that consumers have in specific retail contexts. Five shopping trip value dimensions and six in-store shopping value dimensions are identified from the in-depth interviews. The findings highlight how consumer shopping value is a complex and context specific construct.