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How Critical Is a Good Location to a Regional Shopping Center?

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Abstract

The goal of this paper is to empirically measure the consumer utility tradeoff between store location (i.e., distance to a shopping center) and retail agglomeration in regional shopping centers. Using the Lakshmanan and Hansen retail expenditure model, our findings reveal that the distance specification is of surprisingly little importance in explaining retail sales. Conversely, agglomeration economies were of significant importance in explaining consumer patronage at regional shopping centers. The implication of these results is that smaller regional shopping centers may be dominated by large super-regional shopping centers with the smaller one or two anchor regional shopping centers unable to compete with the larger, many-anchored super-regional shopping centers.

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  • Mark J. Eppli & James D. Shilling, 1996. "How Critical Is a Good Location to a Regional Shopping Center?," Journal of Real Estate Research, American Real Estate Society, vol. 12(3), pages 459-468.
    • Handle: RePEc:jre:issued:v:12:n:3:1996:p:459-468
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    1. R. Turner & H.S.D. Cole, 1980. "An Investigation into the Estimation and Reliability of Urban Shopping Models," Urban Studies, Urban Studies Journal Limited, vol. 17(2), pages 139-157, June.
    2. Mark J. Eppli & John D. Benjamin, 1994. "The Evolution of Shopping Center Research: A Review and Analysis," Journal of Real Estate Research, American Real Estate Society, vol. 9(1), pages 5-32.
    3. B. Curtis Eaton & Richard G. Lipsey, 1976. "Comparison Shopping and Clusters of Homogeneous Firms," Working Paper 226, Economics Department, Queen's University.
    4. West, Douglas S & Von Hohenbalken, Balder & Kroner, Kenneth, 1985. "Tests of Intraurban Central Place Theories," Economic Journal, Royal Economic Society, vol. 95(377), pages 101-117, March.
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    Cited by:

    1. Ming-Long Lee & R. Kelley Pace, 2005. "Spatial Distribution of Retail Sales," The Journal of Real Estate Finance and Economics, Springer, vol. 31(1), pages 53-69, August.
    2. Shiwei Lu & Shih-Lung Shaw & Zhixiang Fang & Xirui Zhang & Ling Yin, 2017. "Exploring the Effects of Sampling Locations for Calibrating the Huff Model Using Mobile Phone Location Data," Sustainability, MDPI, vol. 9(1), pages 1-18, January.
    3. John Clapp & Katsiaryna Bardos & Tingyu Zhou, 2014. "Expansions and Contractions of Major US Shopping Centers," The Journal of Real Estate Finance and Economics, Springer, vol. 48(1), pages 16-56, January.
    4. Saša Medić & Jelena Atanacković Jeličić & Milan Rapaić, 2024. "Advancing Social and Economic Sustainability in Urban Areas: A Methodology for Determining Architectural Programs of Shopping Centers," Sustainability, MDPI, vol. 16(8), pages 1-25, April.
    5. William Hardin III & Marvin Wolverton, 2000. "Micro-Market Determinants of Neighborhood Center Rental Rates," Journal of Real Estate Research, Taylor & Francis Journals, vol. 20(3), pages 299-322, January.
    6. Eckert, Andrew & He, Zhen & West, Douglas S., 2015. "An empirical analysis of tenant location patterns near department stores in planned regional shopping centers," Journal of Retailing and Consumer Services, Elsevier, vol. 22(C), pages 61-70.
    7. 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.
    8. M. Gordon Brown, 1999. "Design and Value: Spatial Form and the Economic Failure of a Mall," Journal of Real Estate Research, American Real Estate Society, vol. 17(2), pages 189-226.
    9. Neil A Powe, 2012. "Small Town Vitality and Viability: Learning from Experiences in the North East of England," Environment and Planning A, , vol. 44(9), pages 2225-2239, September.
    10. Andres Sevtsuk & Raul Kalvo, 2018. "Patronage of urban commercial clusters: A network-based extension of the Huff model for balancing location and size," Environment and Planning B, , vol. 45(3), pages 508-528, May.
    11. Puligadda, Sanjay & Ross, William T. & Chen, Jinjie & Howlett, Elizabeth, 2012. "When loyalties clash purchase behavior when a preferred brand is stocked out: The tradeoff between brand and store loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 19(6), pages 570-577.
    12. Sergio Garate & Anthony Pennington-Cross, 2014. "Measuring the Impact of Agglomeration on Productivity: Evidence from Chilean Retailers," Urban Studies, Urban Studies Journal Limited, vol. 51(8), pages 1653-1671, June.
    13. Francois Des Rosiers & Marius Theriault & Catherine Lavoie, 2009. "Retail Concentration and Shopping Center Rents - A Comparison of Two Cities," Journal of Real Estate Research, American Real Estate Society, vol. 31(2), pages 165-208.
    14. Gabriel Ahlfeldt, 2007. "If Alonso Was Right: Accessibility as Determinant for Attractiveness of Urban Location," Working Papers 012, Chair for Economic Policy, University of Hamburg.
    15. Jinju Kim & Jaecheol Kim & Sangkyeong Lee, 2024. "Impact of Spatial Characteristics on Gendered Retail Consumption in Seoul: A Gender-Sensitive Urban Planning Perspective," Sustainability, MDPI, vol. 16(14), pages 1-23, July.
    16. Haugen, Katarina & Vilhelmson, Bertil, 2013. "The divergent role of spatial access: The changing supply and location of service amenities and service travel distance in Sweden," Transportation Research Part A: Policy and Practice, Elsevier, vol. 49(C), pages 10-20.
    17. Alexander Kubis & Maria Hartmann, 2007. "Analysis of Location of Large-area Shopping Centres. A Probabilistic Gravity Model for the Halle–Leipzig Area," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 27(1), pages 43-57, February.

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    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

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