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The Contribution of Regional Shopping Centres to Local Economic Development: Threat or Opportunity?
Colin Williams
1992, Area
November 15, 2024
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The Contribution of Regional Shopping Centres to Local Economic Development: Threat or
Opportunity?
Author(s): Colin C. Williams
Source: Area, Vol. 24, No. 3 (Sep., 1992), pp. 283-288
Published by: Royal Geographical Society (with the Institute of British Geographers)
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Area (1992) 24.3, 283-288
The contribution of regional shopping
centres to local economic development:
threat or opportunity?
Colin C Williams, Urban Development and Planning, Leeds Polytechnic, Brunswick
Building, Leeds LS2 8BU
Summary This paper raises the idea that regional shopping centres (RSC) may contribute to the
revitalisation of the areas in which they locate. They bring income into the local economy, prevent
leakage of money, facilitate place marketing and improve employment conditions. Where they avoid
greenfield sites, actively encourage local entrepreneurs and provide appropriate public transport,
RSCs deserve support in local economic policy.
A popular prejudice concerning the retail sector in general and regional shopping
centres (RSCs) in particular is that they have little to contribute to local economic
development'. Such a view has its theoretical foundation in economic base theory.
This divides an economy into ' basic ' industries which meet an external demand and
'dependent' industries which fulfil the needs of a local market. As an economy is said
to need to earn income from outside in order to grow, the ' basic ' sector is seen as the
engine of growth. ' Non-basic ' industries, meanwhile, are viewed as ' residual ' activi
ties contributing little, if anything, to local economies. The retail sector is perceived as
falling firmly into the latter category.
In recent years, the traditional conception that the ' basic ' sector is composed solely
of primary and manufacturing activity has been heavily criticised. There is now a
wealth of literature within which it is displayed that producer services trade not only
inter-regionally (Beyers and Alvine 1985; Coffey and Polese 1987; Daniels 1984; Fich
1990; Marshall 1983; van Dinteren 1987) but also internationally (Daniels 1991;
Segebarth 1990; Tucker and Sundberg 1988). The result is that these services have
increasingly featured in local economic policy.
Indeed, the basic sector is today recognised to be composed of two elements: on
the one hand, export industries, which include not only primary and manufacturing
industries but also many producer services and, on the other hand, activities which
attract people into a locality in order to spend money (Farness 1989; Hefner 1990).
Until now, tourism has been the main focus in this latter category (Law 1991). Here,
however, it is suggested that regional shopping centres are also basic activities in this
latter sense and thus provide opportunities for local economic development.
Whilst the number of jobs in the primary and manufacturing sectors continues to
decline, retailing is a major growth sector in the United Kingdom, with the number of
jobs having increased by 8 1 per cent between 1981 and 1991. Over 1 in 10 (10 2 per
cent) of all employees in employment today work in this industry (Employment Gazette
September 1991). Within this expanding industry, the past decade has witnessed not
only a proliferation of superstores2, but also a steep rise in the number of proposals for
RSCs (Rowley 1992). Indeed, the growth rate of planning applications for RSCs
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284 Williams
during the last few years has been matched in magnitude only by their failure rate
(Hallsworth 1991). RSCs, that is, have been heavily opposed.
Here, however, a case is put for the defence. First, the threats purportedly created by
RSCs will be critically evaluated and, secondly, the opportunities which these retail
complexes present to the local economies in which they locate will be explored.
Regional shopping centres: a threat?
In what follows discussion is confined to five cornerstones of the opposition to RSCs.
First, the claim that RSCs are inaccessible to non-car owners. Although this is often
applicable to RSCs in the United States and to some free-standing superstores and
retail parks in the United Kingdom, it is not so relevant, as Bowlby (1990, 9) says, to
RSCs in the United Kingdom where good public transport facilities are often provided.
For example, at the Meadowhall RSC, located in the Lower Don Valley area of
Sheffield, around ?23 million has been spent on transport infrastructure, including
a passenger transport interchange with two rail stations and a bus station. The
Supertram, currently under construction, will add further public transport links with
Sheffield city centre and, eventually, with the rest of South Yorkshire. The Metro
Centre in Gateshead, furthermore, has a twelve bay bus terminus and a railway station.
It is perhaps only in the United States, moreover, that public transport to RSCs is
problematic. In Canada, Gaylor (1989, 279) writes, virtually all RSCs are on bus routes
and the larger ones act as interchange points between bus routes and between bus and
rail rapid transit. Such public transport is relatively viable, furthermore, since the unit
costs per passenger are lower due to the large guaranteed market of people with the
same destination.
A second possible source of opposition is that they are on ' greenfield ' sites. Again,
although this is sometimes valid for out-of-town superstores and retail parks, it is less
applicable to RSCs which tend to be in run-down areas, such as Enterprise Zones. The
Metro Centre is built on a site previously used for dumping ash from the local power
station. Similarly, the Meadowhall complex is built on the site of the former Hadfield
steelworks in the Lower Don Valley, an area which has suffered successive rounds of
manufacturing disinvestment until the recent wave of investment from service sector
capital. Indeed, and as Howard (1989, 10) reveals, the majority of the proposals for
RSCs in the North and Midlands are for derelict sites. Such proposals have thus
responded to the 1988 Department of Environment guidelines which suggest that
large-scale retail developments have no place in the Green Belt or in areas of open
countryside (Department of Environment 1988).
A third and oft-told tale is that RSCs result in net job losses for the locality. For
example, Jones (1991) displays how this was a key issue in both the Cribbs Causeway
public inquiry in Bristol and the proposal to Glasgow City Council for the Braehead
Centre. However, this is often an extrapolation from literature on the local net employ
ment impacts of superstores (MacDonald and Swales 1991) where it is explicitly
assumed that the superstore serves only the local population and that there is no
induced increase in local retail expenditure from outside the locality. Although this is
doubtless correct for some superstores, it is not the case with RSCs. In Meadowhall, for
example, 83 per cent of visitors travel over 5 miles and 39 per cent for more than 35
miles to get there (Mall Research Services 1990). By implication, therefore, RSCs
increase the locality's market share of the region's retail spending and, thus, the share of
its retail jobs. In short, the veneer of evidence to support the idea that RSCs decrease
employment in the local economies in which they locate is wafer thin.
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Regional shopping centres 285
Fourthly, there is the fear that RSCs destroy city centres. Leaving aside the
notion that RSCs can be in city centre locations (cf the Ridings Shopping Centre in
Wakefield), there is little evidence that, when located elsewhere, RSCs have such
devastating consequences for city centres. A recent retail impact study finds that
Meadowhall has caused a 9 per cent decline in trade in Sheffield city centre (H L
Hearns 1991), whilst Howard (1989, 34) reveals that the Metro Centre captured just 4
per cent of all non-food shopping trips from the Newcastle urban area. As Howard
(1989, 50) concludes, surveys on the impacts of the Metro Centre 'do not show any
kind of " disaster " elsewhere'. In other words, RSCs do not perhaps destroy city
centres to the extent so far assumed. Hence, it seems unlikely that Britain will follow the
United States pattern with major losses of retailing in central cities (Hall and Breheny
1987) because factors such as lower car ownership, higher urban population densities
and stronger planning controls create a different retailing environment (Bowlby 1990,
9).
Indeed, rather than destroy city centres, RSCs may well improve them. One result of
the competition from RSCs is the growth of town centre management (Falk 1991;
Morphet 1991). Newcastle city centre, for instance, has responded to the competition
of the Metro Centre by improving its physical environment for shoppers (Howard
1989, 42-4) and a similar process is currently underway in Sheffield. Hence, RSCs may
facilitate a general upgrading of shopping environments.
Finally, there exists a popular myth that the product of previous rounds of service
capital investment, for example, city centres, are preferable to the result of current
waves of service investment for example RSCs. However, city centres are as much
oriented to the glorification of consumerism and wanton materialism as RSCs. Thus,
the emphasis on consumption in RSCs, which many people decry, is not unique to
these complexes. Further, those excluded from participating in such consumption in
RSCs have no different an experience when in city centres.
Regional shopping centres: windows of opportunity?
In what follows, discussion will be confined to a number of key points. First, whether
RSCs are basic sector activities in the sense that they generate income from outside the
local economy. For example, nine million people live within one hour's drive of the
Meadowhall shopping centre in Sheffield. Of the 400,000 visitors each week, 83 per
cent travel for more than 5 miles and nearly a half of these (47 per cent) have a journey of
more than 35 miles (Mall Research Services 1990). Furthermore, 63 per cent of the
demand for the catering services derives from customers travelling over 5 miles to get
to Meadowhall (Mall Research Services 1991). At the Metro Centre, similarly, the
majority of recorded total spending is from people outside the main catchment area,
that is, over twenty minutes drive (Howard and Davies 1987, 70) and 'shoppers from
longer distances were found to spend more per head than those from nearby ' (Howard
1989, 24). Evidently then, such complexes bring income directly into the locality from
outside, similar to manufacturing industry, which has been the traditional focus of local
economic policy. In this sense, these ' engines of growth 'deserve support.
Secondly, RSCs also bring forth money indirectly. This occurs in at least two ways.
On the one hand, trips to RSCs may result in ' spin off' visits to other local facilities,
through which further income is induced into the local economy. On the other hand,
they function in much the same way as the key industry in a conventional manu
facturing 'growth pole'. That is, when an RSC arrives in a particular location, other
developments will follow suit, such as specialist retailing, sports and leisure complexes
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286 Williams
and other services. This results in further job creation. Young (1985) and Gaylor (1989)
give instances of this in the United States and Canada respectively. In the United
Kingdom, Meadowhall for example, is a hub around which many other projects are
proposing to cluster, such as the Tivoli Gardens leisure complex, a major retail ware
housing development and the Abbey National share dealing and registration services.
These schemes, furthermore, have the potential to be basic sector activities themselves,
bringing in additional money from outside the local economy.
Thirdly, besides directly and indirectly generating income, RSCs contribute to local
economic development by preventing 'leakage' of money out of the locality. Indeed,
this facet of economic development is often under-emphasised in local economic
policy, with its focus upon income generation. Consequently, many local economies
leak like a sieve. Nevertheless, leakage prevention is important, and increasingly so. On
the one hand, this is due to the rise in inter-local and inter-regional shopping in the
United Kingdom. If a local economy does not have an RSC, it will lose money to a
neighbouring locality which has had the foresight to construct such a complex. With
the shift from managerialism to entrepreneurialism in urban governance (Harvey
1989), capturing an RSC thus becomes necessary if a locality is not to lose market share
to its neighbours.
On the other hand, leakage prevention is necessary because income generation per se
is less important to a local economy than net income. To explain, the rise in income to a
locality is the product of income receipts, times a multiplier (which is larger the more
self-reliant the economy) less import costs. As such, RSCs can be a central and essential
element in local economic policy for they achieve both income generation and leakage
prevention simultaneously. Indeed, RSCs appear to be better vehicles for retaining
income in a local economy than the traditional High Street. In the Metro Centre for
example, 'an unusually large proportion of tenants are independents or have three or
fewer branches' (Howard 1989, 13) because similar to other RSCs, ' the Centre's
owners and mangement have specifically encouraged new businesses' (Howard
1989, 14). Consumer research, meanwhile, indicates the perceived sameness of High
Streets and the lack of unusual retailers in them (Howard 1989, 14). Thus, RSCs, if
appropriately managed, are more effective as leakage preventors than the traditional
High Street.
Fourthly, the problem in local economic policy up until now has been that manu
facturing industries have often been seen as the ' basic ' sector and service industries as
the 'dependent' sector. Retailing, therefore, is seen as contributing little to local
regeneration. Adopting such a view, however, is here argued to be tantamount to
endorsing a patriarchal conception of what constitutes a 'real' job. To give manu
facturing sector jobs precedence over service sector employment is to prioritise male
job creation (ie manufacturing is increasingly dominated by males) over female job
creation (eg in the retail sector). However, if by ' real ' is meant any ' basic ' sector
activity then, as has been suggested, retail jobs in RSCs are ' real ' jobs. Some retail
jobs, in the same way as some manufacturing activities, generate income for a locality3.
To support RSCs in local economic policy is thus a way of both opposing patriarchal
attitudes towards what constitutes a ' real' job and improving local labour market
conditions for women (Bowlby 1990).
Alternatively, if a' real ' job is defined as a ' full-time' job, then again, and contrary
to popular opinion, retail jobs are' real' jobs. For example, 44-4 per cent of new retail
jobs counted at the Metro Centre are full-time (Howard 1989, 57).
Fifthly, RSCs can improve the image of an area. Put another way, they facilitate
'place marketing'. With the rise in shopping as a leisure pursuit, such icons of the
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Regional shopping centres 287
'good life' are of ever greater significance in local economic policy. They make the
locality a more attractive place in which to live, work and to do business, which
encourages further inward investment and population migration or retention. For
example, Meadowhall has been used as a vehicle for changing the image of Sheffield for
two groups of' outsiders ': individual consumers from outside the locality who bring in
money to spend and businesses who may decide to invest in the locality. Such invest
ments also facilitate ' civic boosterism ', giving the local population confidence and
shoring up the sagging pride resulting from wave after wave of manufacturing dis
investment. The psychological impact on the local population is thus important. Such
retail complexes can give the local population a more positive ' sense of place'.
Conclusions
In sum, RSCs should be seen as representing an opportunity for economic revital
isation and be supported by local and regional development agencies. This is because
they bring income into the local economy, stop money leaking out, facilitate place
marketing and civic boosterism and improve local labour market conditions. RSCs
should not be seen as a threat. When built either on derelict land or in city centres, with
good quality public transport provided in a form and at a price that will enable those
who most need such transport to use it and local entrepreneurs are encouraged to set up
new businesses within them, then RSCs should not, in general, be opposed. That is,
when undertaken with local interests in mind, RSCs can provide a valuable tool for
economic revitalisation.
Notes
1 The definition of a regional shopping centre here adopted is a purpose-built development with more than
400,000 sq ft of floorspace, comprising a wide range of commercial establishments, usually including
catering and leisure facilities, which is designed, planned, developed, marketed and managed as a unit. The
largest RSCs in the United Kingdom are Merry Hill in the West Midlands, the Lakeside Centre in
Thurrock, Meadowhall in Sheffield, the Metro Centre in Gateshead and Brent Cross in London.
2 The working definition of a superstore here adopted is a store with more than 10,000 sq ft of selling space.
Significant progress, moreover, has been made in understanding the geography of superstore development
(Davies and Sparks 1989, 1990; Rowley 1990; Thorpe 1991; Treadgold and Reynolds, 1989), especially
with regard to the regional differences.
3 It is only some manufacturing establishments which export. In the Fens, for example, over 1 in 10 ( 11 4 per
cent) of manufacturing firms export none of their output from the local economy (Williams 1990).
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Colin Williams
The University of Sheffield, Faculty Member
Colin C Williams is Professor of Public Policy in Sheffield University Management School (SUMS) at the University of Sheffield.
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Assessing the impact of peripheral mega retail centres on traditional urban shopping centres
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Opposition to regional shopping centres in Great Britain: a clash of cultures?
Colin Williams
1995
Despite the existence of a fervent opposition to regional shopping centres (RSCs) in Britain, this article argues that there is little evidence to support the view that they have negative economic, social and environmental impacts. Instead, the vehement rejection of RSCs is asserted to be at least as much due to their cultural impacts as their economic, social and environmental impacts.
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Small Retailing, Town Centres and Inland Territories. An “Extended Town Centre Management” Perspective
Fabio Musso
Public Administration & Regional Studies, 3rd Year, n. 2 (6), Galati University Press, ISSN 2065 -1759, pp 37-58., 2010
This paper aims to analyze the public policies that can be adopted in order to support small retail firms located in town centers and countryside small towns. The role of small retailing has been recognized for the preservation of an economic, social and cultural identity of both town centers and rural/mountain areas. The field of this analysis is more extended than that covered by the Town Centre Management (TCM) literature, that is mainly focused on city centers. In this case the study is also addressed to smaller towns and inland areas. A case study of an Italian province has been conducted with the objective to underline the main factors that need to be considered by local administrators for the adoption of coordinated policies.
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Can local retail foster neighbourhood revitalisation? A review of the literature
María Beltrán Rodríguez
Journal of Urban Regeneration and Renewal, 2015
This paper examines the relationship between local retail and neighbourhood changes. The purpose is to assess, through different lenses, conceptual frameworks and research methodologies, the reasons why local businesses may be or not beneficial for neighbourhood revitalisation and for communities. The paper draws on seven different case studies, undertaken by different researchers in various contexts, and ranging from predominantly quantitative to highly qualitative approaches and from economic-oriented perspectives to more socially grounded ones. The various empirical findings have an interesting input on the effects of local retail in areas such as crime, social capital and interaction, urban design quality, diversity, community formation or ecology.
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Commercial Buildings in Town. The Influence of Discount Shops on the Trade Structure of a Small Town
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Buildings
Changes taking place in the spatial structure of trade in cities have been very dynamic in recent decades. The goal of the research was to determine the dynamics and direction of changes in shaping the traditional commercial structure of small towns, in the context of discount shops location. The subject matter of the research constituted more than ten towns in southern Poland. Traditional shops located there were analysed in terms of their location, the profile and length of their activity. Studies on global trade development processes are available, as well as detailed research results on individual trade assumptions. On the other hand, there is a research gap regarding studies involving the location of commercial buildings, especially in small towns. The research results are a valuable source of information for representatives of various scientific disciplines as well as city authorities. The presented research provides knowledge and constitutes the basis for further research for...
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Rethinking the role of the retail sector in economic development
Colin Williams
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This article critically reviews the widespread notion that the retail sector is a 'dependent'activity, reliant upon the supposedly more 'productive'sectors of the economy for its survival. Through a critical evaluation of the source of this belief,'economic base'theory, the ability of locally-oriented enterprises to curb the seepage of income from an area is revealed to be as important to economic development as the external income generating function of outward-oriented industries.
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Can Shopping Malls Improve Resilience of City Centres? Relations Between Shopping Malls and Urban Space
Tomasz E . Malec
Shopping malls have a very high aesthetic, economic, and sociological impact on their surroundings. They change habits of citizens, and the structure of trade and services may create dysfunction of cities. Appropriate identification of evolving spatial relations between shopping malls and their environment allows for relevant programming of the objects prior to their realization and subsequent functioning in the urban space. The main aim of my research is to determine the conditions which must be met for proper functioning of shopping malls without causing damage in complex urban structures. In the interdisciplinary research conducted on selected shopping malls in the Silesia region, I used a complex methodology, including chosen research tools from several disciplines. The expected results of the research will allow the location of shopping malls in urban areas without causing any negative effects, enabling further functioning of a widely considered, more resilient urban space.
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Development of Shopping Centers in Central and Southeastern Europe
Blaženka Knežević
DAAAM International Scientific Book, 2014
Shopping centers play an important role in improving the quality of life in town and city centers around the world. Often seen as drivers of local economies, shopping centers are necessary to maintain economic growth and a sense of community, offering employment, and providing a better quality of life. In last decades in all capital cities and large cities in Central and Southeastern Europe numerous shopping centers were open and therefore the situation at retail market and traditional supply chains changed rapidly. The aim of this paper is to provide key data related to shopping center industry in Central and Southeastern European countries and to analyze the structure of retail offers, opportunities for investors, retailers and consumers at given markets. Comparative analysis of secondary data will give an insight into the current state of shopping center development and discuss the problems related to future retail development in Southeastern Europe.
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Retail planning and urban resilience – An introduction to the special issue
Teresa Barata-Salgueiro
Cities, 2014
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Quasi-public place-governance: an exploration of shopping centres
Dr Jill Dickinson
Business Law Review, 2019
Shopping centres face multiple issues arising from their status as quasi-public Third Places. Such challenges are compounded by the enduring, difficult retail environment. Against this backdrop, the research explores how a legally pluralistic understanding of place-governance could inform future strategies for securing shopping centres’ roles within the community. This UK-based, bistage, multi-case study draws on various data sources collected from seven shopping centres across Northern England. It adopts both thematic analysis and cross-case synthesis to generate rich findings. The data analysis identified three key themes: the diverse shopping centre population, internally generated norms and externally developed law. This article makes a bifold contribution to the literature. First, it commingles and develops theories of legal geography and legal pluralism to introduce a new tripartite lens for exploring place-governance, which comprises black-letter, policy and cultural elements...
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