Decentralisation of Retail

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Decentralisation of Retail by Mind Map: Decentralisation of Retail

1. 1) Decentralisation of retail

1.1. What is it?

1.1.1. The process of redistributing major retailers from central locations in the CBD (Central Business District) to the edge of the city.

1.1.2. This causes the Polo Effect in the UK where theres is an economic, social and retailing hole in the middle of the city.

1.2. Why is it occurring?

1.2.1. Cheaper land

1.2.2. Room for expansion

1.2.3. Suburbanisation -Ring roads

1.2.4. Increased transport links to outer city areas eg. Tramlinks

1.2.5. Land values in town centres increased rapidly, by up to 500% in some places, and many retail firms found it increasingly difficult to afford the high rents and rates situated there.

1.2.6. There was more available land on the outskirts of towns. it was also much cheaper to buy or rent and there was more space for growth and expansion and for the provision of car parking.

1.2.7. Rapid growth in car ownership. Many families now own one and sometimes two cars. it is much easier to visit an out of town centre with ample free parking which is close to shops and where there is less traffic congestion like in many town centres.

1.3. The late 1960s to early 1970s when food retailers moved from the town centre to supermarkets on larger sites with car parking space in the suburbs

1.4. The late 1970s to mid-1980s when bulky goods retailers eg. DIY, furniture, electrical goods and motor accessories, moved out of town and there was a rapid growth in large retail warehouses

1.5. The mid 1980s to early 1990s when stores selling other comparision goods such as clothing, footwear, and toys, many to retail parks. this was the time when some larger operators such as M&S moved out-of-town retail centres. These have a wide range of retail, catering and entertainment facilities closely integrated in one large covered space.

1.6. The 1990s when warehouse clubs, factory outlet centres and airport retail complexes were created.

2. 3) Impact of decentralisation of retail

2.1. What impact has the decentralisation of retail had on traditional town/city centres?

2.1.1. City centres

2.1.1.1. Positives

2.1.1.1.1. Redevelopments of inner city shopping centres to compete against out of town retail centres

2.1.1.1.2. Reduces city congestion for commuters

2.1.1.2. Negatives

2.1.1.2.1. The Growth in E-Commerce - Between 2003-10 accounted for half of all retail growth sales taking business away form street stores

2.1.1.2.2. National down turn in retail spending

2.1.1.2.3. In 2015 - Altrincham was the worst performer in Britain for Medium sized shopping centres with 25.8pc of shops empty (revealed by the M.E.N.)

2.1.2. Towns

2.1.2.1. Positives

2.1.2.1.1. Provides employment in form of chefs, store workers, cleaners etc.

2.1.2.1.2. Brings wealth to the surrounding area

2.1.2.2. Negatives

2.1.2.2.1. Shops close down

2.1.2.2.2. Large chain shops relocate to out of town retail centres

2.1.2.2.3. Urban sprawl takes place in the Urban-Rural fringe = loss of greenbelt land

2.1.2.2.4. Increased road use, threat of new roads on farmland

2.2. What responses are being taken by towns/city to the decentralisation of retail.

2.2.1. City centres

2.2.1.1. Multiple retailers seeking to establish fewer but better stores to attract more business to shops rather than online

2.2.2. Towns

2.2.2.1. Altrincham - The Council have developed an effective partnership with private sector to focus on key issues in area e.g. improving access to town centre and refurbishing the local market

2.2.2.1.1. £70 million regeneration plan - "Altair Project"

2.2.2.2. Ashton Under Lyme - The Development Prospectus locally have re-located Tameside College creating impacts such as maximising the amount of students as well as solving other key issues for example improving the Metrolink Project and managing competition from nearby such as Ashton Moss Retail Complex

2.2.2.3. Other places in Greater Manchester have started to respond e.g. Bolton, Bury, Stockport by finding out key issues in the local area such as the need to attract more visitors and focusing in Rochdale and focusing on in-town office and commercial development in Stockport

2.2.2.4. Important factors to attract include; Events such as Christmas markets, having optimum opening hours, pleasant aesthetic and cleanliness.

3. 4) Impact of e-commerce

3.1. What impact is e-commerce having on traditional retailers (both in and out of town?)

3.1.1. Positives

3.1.1.1. Large decentralised warehouses provide many jobs as demand for manual workers and delivery drivers is high. All relatively unskilled.

3.1.1.2. People can get more things for cheaper so will likely buy more, adding to the profit revenue of the business.

3.1.1.2.1. This puts mail services such as UPS and Royal Mail to use, ensuring the keeping of many jobs.

3.1.1.3. It is healthy competition as it promotes innovation. Out-competing however can causes businesses to fail, damaging local economies.

3.1.2. Negatives

3.1.2.1. Reduced taxation on purchases so less money gained by government to put to use (eg infrastructure).

3.1.2.2. Loss of jobs in retail due to shops closing down due to being outcompeted. Fewer people in work, then means they have less money to spend.

3.1.2.2.1. This can have a demultiplier effect as people then move in search of jobs, taking many services with them.

3.1.3. Because online retail doesn't need to be strategically located, they can have a larger sphere of economic impact.

3.1.4. Online retail is open all hours and has a wider range to offer as a result of no limit on storage/shop space.

3.1.4.1. It is a closed market to those who don't have access to the internet, such as old people or geographically isolated individuals.

3.2. What are retailers doing/being encouraged to do in response to this impact?

3.2.1. Commercial transactions conducted electronically on the internet - Definition of ecommerce

3.2.2. Many large retailers will be seeking to establish 'fewer but better stores' which will appeal to the customer more.

3.2.3. Smaller centres have to adapt to changes and growth of ecommerce, making it suit them and fulfilling the role of convenience - Eg offering collection points for sales placed online.

3.2.4. Increased focus on improving public transport/transport links in and out of retail areas - Making it as convenient as possible for people to shop there

3.2.4.1. Example of this is Altrincham

3.2.4.1.1. £19 million overhaul of the Altrincham Interchange (transport link).

3.2.4.1.2. Footfall (number of people passing through) is 50% higher than expected given its proximity to competition such as Trafford Centre and Manchester.

3.2.5. Towns seek to attract more people through internal improvement

3.2.5.1. Such as Wigan

3.2.5.2. Improved/innovated shopping centres

3.2.5.3. Raising ambition - attracting customers from a higher income base and wider catchment beyond Greater Manchester

3.2.6. Transport - making the centre more accessible to all ages

3.3. Key Figures

3.3.1. Online retail accounts for 15% of all retail spend.

3.3.2. Between 2003 and 2010 ecommerce accounted for nearly half of all retail growth

3.3.3. The Javelin Group (of retail group) estimate that this trend will result in 21% less retail space and 31% fewer stores in town centre venues by 2020