IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v76y2024ics0969698923003429.html
   My bibliography  Save this article

Retail rings of influence: Rethinking retail catchment analysis in the light of purchasing power

Author

Listed:
  • Yiu, Chung Yim
  • Truong, Quan Le
  • Kou, Jiaying
  • Cheung, Ka Shing

Abstract

Catchment areas are vital indicators of purchasing power that significantly influence the retail sales of shopping malls. However, conventional models, typically provided by mall owners, often assume a fixed isochrone, neglecting the sensitivity of the catchment size on mall's positioning strategies and sizes. This study introduces a novel, flexible approach, leveraging the population and household incomes of administrative units as a proxy for purchasing power, thereby enabling a sensitivity analysis on adjustable catchment sizes. We develop a Python programme to geofence these units based on an adjustable isochrone radius. This pioneering research also applies principles from the species-energy relationship and niche specialisation theory to build a theoretical model of catchment areas, empirically testing it using Australian data. Our findings confirm that while purchasing power within varying catchment sizes exerts a positive influence on retail sales, the impact is less pronounced for larger malls due to their more generalised niche in attracting customers far away from the malls. This study sheds new light on the dynamic interplay between catchment area characteristics and mall performance, offering valuable insights for future research and retail strategy planning.

Suggested Citation

  • Yiu, Chung Yim & Truong, Quan Le & Kou, Jiaying & Cheung, Ka Shing, 2024. "Retail rings of influence: Rethinking retail catchment analysis in the light of purchasing power," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    • Handle: RePEc:eee:joreco:v:76:y:2024:i:c:s0969698923003429
    DOI: 10.1016/j.jretconser.2023.103591
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698923003429
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretconser.2023.103591?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ozhan Ertekin & Vedia Dokmeci & Tuba Unlukara & Evren Ozus, 2008. "Spatial Distribution of Shopping Malls and Analysis of their Trade Areas in Istanbul," European Planning Studies, Taylor & Francis Journals, vol. 16(1), pages 143-156, January.
    2. Eaton, B Curtis & Lipsey, Richard G, 1982. "An Economic Theory of Central Places," Economic Journal, Royal Economic Society, vol. 92(365), pages 56-72, March.
    3. Anselmsson, Johan, 2016. "Effects of shopping centre re-investments and improvements on sales and visit growth," Journal of Retailing and Consumer Services, Elsevier, vol. 32(C), pages 139-150.
    4. Rasouli, Soora & Timmermans, Harry, 2013. "Assessment of model uncertainty in destinations and travel forecasts of models of complex spatial shopping behaviour," Journal of Retailing and Consumer Services, Elsevier, vol. 20(2), pages 139-146.
    5. Patrick Ballantyne & Alex Singleton & Les Dolega & Jacob Macdonald, 2023. "Integrating the Who, What, and Where of U.S. Retail Center Geographies," Annals of the American Association of Geographers, Taylor & Francis Journals, vol. 113(2), pages 488-510, February.
    6. Teller, Christoph & Reutterer, Thomas, 2008. "The evolving concept of retail attractiveness: What makes retail agglomerations attractive when customers shop at them?," Journal of Retailing and Consumer Services, Elsevier, vol. 15(3), pages 127-143.
    7. Lawrence Joseph & Michael Kuby, 2011. "Gravity Modeling and its Impacts on Location Analysis," International Series in Operations Research & Management Science, in: H. A. Eiselt & Vladimir Marianov (ed.), Foundations of Location Analysis, chapter 0, pages 423-443, Springer.
    8. Cervero, Robert & Kang, Chang Deok, 2011. "Bus rapid transit impacts on land uses and land values in Seoul, Korea," Transport Policy, Elsevier, vol. 18(1), pages 102-116, January.
    9. Dolega, Les & Pavlis, Michalis & Singleton, Alex, 2016. "Estimating attractiveness, hierarchy and catchment area extents for a national set of retail centre agglomerations," Journal of Retailing and Consumer Services, Elsevier, vol. 28(C), pages 78-90.
    10. Kuruvilla, Shelja Jose & Joshi, Nishank, 2010. "Influence of demographics, psychographics, shopping orientation, mall shopping attitude and purchase patterns on mall patronage in India," Journal of Retailing and Consumer Services, Elsevier, vol. 17(4), pages 259-269.
    11. Ling-Hin Li & Ka Shing Cheung & Sue Yurim Han, 2018. "The impacts of cross-border tourists on local retail property market: an empirical analysis of Hong Kong," Journal of Property Research, Taylor & Francis Journals, vol. 35(3), pages 252-270, July.
    12. Yi-Jen (Ian) Ho & Sanjeev Dewan & Yi-Chun (Chad) Ho, 2020. "Distance and Local Competition in Mobile Geofencing," Information Systems Research, INFORMS, vol. 31(4), pages 1421-1442, December.
    13. Finn, Adam & Louviere, Jordan J., 1996. "Shopping center image, consideration, and choice: Anchor store contribution," Journal of Business Research, Elsevier, vol. 35(3), pages 241-251, March.
    14. Tammy Drezner & Zvi Drezner, 2002. "Validating the Gravity-Based Competitive Location Model Using Inferred Attractiveness," Annals of Operations Research, Springer, vol. 111(1), pages 227-237, March.
    15. Rao, Fujie & Pafka, Elek, 2021. "Shopping morphologies of urban transit station areas: A comparative study of central city station catchments in Toronto, San Francisco, and Melbourne," Journal of Transport Geography, Elsevier, vol. 96(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dolega, Les & Pavlis, Michalis & Singleton, Alex, 2016. "Estimating attractiveness, hierarchy and catchment area extents for a national set of retail centre agglomerations," Journal of Retailing and Consumer Services, Elsevier, vol. 28(C), pages 78-90.
    2. O'Driscoll, Conor & Crowley, Frank & Doran, Justin & McCarthy, Nóirín, 2022. "Retail sprawl and CO2 emissions: Retail centres in Irish cities," Journal of Transport Geography, Elsevier, vol. 102(C).
    3. Arpita Khare, 0. "Location and agglomeration factors predicting retailers’ preference for Indian malls," Journal of Marketing Analytics, Palgrave Macmillan, vol. 0, pages 1-22.
    4. Wieland, Thomas, 2014. "Räumliches Einkaufsverhalten und Standortpolitik im Einzelhandel unter Berücksichtigung von Agglomerationseffekten: Theoretische Erklärungsansätze, modellanalytische Zugänge und eine empirisch-ökonome," MPRA Paper 77163, University Library of Munich, Germany.
    5. Arpita Khare, 2020. "Location and agglomeration factors predicting retailers’ preference for Indian malls," Journal of Marketing Analytics, Palgrave Macmillan, vol. 8(4), pages 245-266, December.
    6. Song Zhang & Mark Duijn & Arno J. Vlist, 2023. "Tenant Mix and Retail Rents in High Street Shopping Districts," The Journal of Real Estate Finance and Economics, Springer, vol. 67(1), pages 72-107, July.
    7. Gilboa, Shaked & Mitchell, Vince, 2020. "The role of culture and purchasing power parity in shaping mall-shoppers’ profiles," Journal of Retailing and Consumer Services, Elsevier, vol. 52(C).
    8. Borgers, Aloys & Vosters, Cindy, 2011. "Assessing preferences for mega shopping centres: A conjoint measurement approach," Journal of Retailing and Consumer Services, Elsevier, vol. 18(4), pages 322-332.
    9. Gilboa, Shaked & Vilnai-Yavetz, Iris & Mitchell, Vince & Borges, Adilson & Frimpong, Kwabena & Belhsen, Nourdine, 2020. "Mall experiences are not universal: The moderating roles of national culture and mall industry age," Journal of Retailing and Consumer Services, Elsevier, vol. 57(C).
    10. El Hedhli, Kamel & Chebat, Jean-Charles & Sirgy, M. Joseph, 2013. "Shopping well-being at the mall: Construct, antecedents, and consequences," Journal of Business Research, Elsevier, vol. 66(7), pages 856-863.
    11. Pantano, Eleonora & Dennis, Charles & De Pietro, Michela, 2021. "Shopping centers revisited: The interplay between consumers’ spontaneous online communications and retail planning," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).
    12. Anselmsson, Johan, 2016. "Effects of shopping centre re-investments and improvements on sales and visit growth," Journal of Retailing and Consumer Services, Elsevier, vol. 32(C), pages 139-150.
    13. Dizdarevic, Amela & Evanschitzky, Heiner & Backhaus, Christof, 2018. "Elevating Shopping Experiences Through Digital Technologies - The Case of Retail Agglomerations," Marketing Review St.Gallen, Universität St.Gallen, Institut für Marketing und Customer Insight, vol. 35(6), pages 34-41.
    14. Yoon, Heeyeun, 2018. "Interrelationships between retail clusters in different hierarchies, land value and property development: A panel VAR approach," Land Use Policy, Elsevier, vol. 78(C), pages 245-257.
    15. Lin, Ting (Grace) & Xia, Jianhong (Cecilia) & Robinson, Todd P. & Olaru, Doina & Smith, Brett & Taplin, John & Cao, Buyang, 2016. "Enhanced Huff model for estimating Park and Ride (PnR) catchment areas in Perth, WA," Journal of Transport Geography, Elsevier, vol. 54(C), pages 336-348.
    16. Alexander, Andrew & Teller, Christoph & Wood, Steve, 2020. "Augmenting the urban place brand – On the relationship between markets and town and city centres," Journal of Business Research, Elsevier, vol. 116(C), pages 642-654.
    17. El Hedhli, Kamel & Zourrig, Haithem & Park, Jeongsoo, 2017. "Image transfer from malls to stores and its influence on shopping values and mall patronage: The role of self-congruity," Journal of Retailing and Consumer Services, Elsevier, vol. 39(C), pages 208-218.
    18. Reimers, Vaughan, 2013. "Convenience for the car-borne shopper: Are malls and shopping strips driving customers away?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 49(C), pages 35-47.
    19. Pantano, Eleonora & Dennis, Charles, 2019. "Store buildings as tourist attractions: Mining retail meaning of store building pictures through a machine learning approach," Journal of Retailing and Consumer Services, Elsevier, vol. 51(C), pages 304-310.
    20. Christoph Teller & Jennifer A. Thomson, 2011. "Gender differences of shoppers in the marketing and management of retail agglomerations," The Service Industries Journal, Taylor & Francis Journals, vol. 32(6), pages 961-980, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joreco:v:76:y:2024:i:c:s0969698923003429. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.