Retail concentration: a comparison of spatial convenience in shopping strips and shopping centres

The emergence of the Internet and a more discerning consumer has created the need for traditional retail centres to provide a more convenient shopping environment. A retail centre offers convenience when it minimises the spatial, temporal and effort costs of shopping. Existing strategies for spatial convenience include limiting the size of a retail centre by controlling the entry of non-retail firms, creating a compact physical design, and creating compatible clusters of shops. The authors’ propose an alternative method; the degree of retail concentration. The purpose of this study is to determine the extent to which shopping centres (also referred to as shopping malls) and shopping strips (also referred to as the high street, downtown or city centre) provide retail concentration. From the measures taken, this study provides insight into the degree of retail concentration offered by a sample of nine shopping centres (also referred to as a shopping mall) and nine shopping strips (also referred to as the high street, downtown or city centre). The findings yielded three important insights. Firstly, across the three measures of retail concentration, the shopping centre was found to offer consumers’ greater spatial convenience. Secondly, the findings add support to the notion that the demise of the shopping strip could be linked to its inability to satisfy the needs of a convenience-oriented society. And thirdly, while the shopping strip may be at a competitive disadvantage in terms of spatial convenience, market mechanisms such as Bid Rent Theory provided a better-than-expected spatial juxta-positioning of its businesses.