The purpose of this research is to bridge the gap between retail research results on customer movement in shopping centers and importance of space syntax analysis in predicting indoor navigation pattern for better understanding of store space allocation, store location and tenanting decision making in shopping malls.
A bid-rent model is specified and solved under the condition of profit maximization of individual stores to examine the impact of customer density in predicting store space allocation and rental decision making. To predict the importance of visibility in customer density distribution, data were collected through recording navigational preferences of individuals in computer generated situations of shopping mall junctions using a convenience sampling method. The visibility characteristics were studied using visibility graph analysis by syntax 2D software tools. The model is extended under condition of revenue maximization of the entire mall in rationalizing tenanting decision making.
Tenanting, rent and store space allocation decisions depend on the customer density distribution throughout the shopping mall. Natural movement and consequent natural customer density depend on the visual integration of a location along with metric distance from the access point. Revenue maximization of the shopping mall depends on the strategic positioning of different store types. The positioning of different stores in turn depends on the spatial configuration, which dictates natural customer density distribution.
This paper, being the first of its kind, integrates retail research wisdom and syntactic measures to illustrate the efficacy of space design as a strategic decision making tool, instead of just an accommodator of functions.
Contents
1.0 Introduction
1.1 Background of the research
1.2 Research objective
2.0 Literature Review
2.1 Location and rent decision of stores in a planned shopping centre
2.2 Human navigation pattern in indoor environment and spatial configuration
3.0 Methodology
3.1 Bid-rent analysis
3.2 Measuring navigation pattern in a shopping mall
3.3 Space Syntax analysis
4.0 Findings and Discussion
4.1 Establishing relationship between store area, rent per unit area and customer density
4.1.1 The relationships for different store types
4.1.2 The logic of tenanting decision
4.2 Analysing navigational intentions and shopping motivations
4.2.1 Respondent’s navigation behaviour
4.2.2 Navigational behaviour and shopper type
4.3 Syntactical Analysis
4.3.1 Analysing the syntactic logic behind navigational preferences
5.0 Conclusion
Research Objectives and Themes
This work explores the intersection of spatial configuration, retail management, and economics within shopping malls. It aims to develop a scientific rationale for strategic decision-making, specifically regarding store location, space allocation, and tenant-mix, by integrating space syntax analysis with traditional bid-rent economic models.
- Integration of architectural spatial analysis with retail economic theory.
- Examination of customer density distribution and its impact on store area and rent optimization.
- Analysis of individual navigational behavior and the influence of visual cues on shopper movement.
- Application of Visibility Graph Analysis (VGA) to predict customer flow and optimize mall layouts.
- Development of a spatial decision-making model to address high vacancy rates in planned shopping centers.
Excerpt from the Book
3.1 Bid-rent analysis
The basic premise of bid-rent theory is to analyse the way spatial arrangement has to do with economics by establishing the relationship between rent of a particular location with the accessibility of the same. It is, thus, the spatial distribution of socio-economic activity and it explains the way commercial and non-commercial properties in an urban area are distributed with respect to spatial accessibility. As shopping malls are considered as urban experience in a closed environment, the methodology can also be applied in understanding the economics of their spatial arrangement.
There is centralization of activities in a city and so should be for shopping malls. In the field of urban economics and urban planning, accessibility modulates and accommodates the generation of ‘movement’. The centrality has been approached in different ways. Hillier (1999) approached centrality as a spatial process and grid deformation. In the field of economic geography, centrality has been dealt with in terms of attractiveness (e.g. Christaller, 1966; Lösch, 1952; Isard, 1956; Alonso, 1964; Krugman, 1996; Fujita et al., 2001). Centrality can also be described in terms of the concentration of socio-economic activities. The process of concentration is described as agglomeration economics (e.g. Marshall, 1890; Fujita & Thisse, 2008).
The concept of centrality in spatial terms was first addressed by von Thünen (1826) with the analogy of agricultural development of a city. The subsequent growth of a city is represented by concentric rings from the centre outwards. Von Thünen prescribed several important assumptions to his ‘isolated state’ model. The most important assumption of his theory was a flat featureless plane with a single city at the centre (e.g. Dickinson, 1969; O’ Kelly & Bryan, 1996). Concentric rings illustrate the distance from the city centre. Assumption of a single market place allowed von Thünen to assess the impact of price differential with respect to the distance from the central location. So, rent near the city centre would be higher compared to the locations away from the centre.
Summary of Chapters
1.0 Introduction: Sets the stage by highlighting the lack of scientific research into spatial design within retail management and defines the research gap regarding mall vacancy and design complexity.
2.0 Literature Review: Contrasts traditional economic bid-rent models with modern spatial configuration theories to establish a foundational interdisciplinary framework.
3.0 Methodology: Details the application of bid-rent analysis and Space Syntax (including Visibility Graph Analysis) as core scientific tools for studying mall movement and economics.
4.0 Findings and Discussion: Presents mathematical models relating store area, rent, and density, while analyzing empirical survey data regarding shopper navigational preferences and syntactic logic.
5.0 Conclusion: Synthesizes findings into a spatial decision-making model, concluding that space planning is a critical tool for aligning architectural form with economic profit.
Keywords
Shopping Malls, Spatial Economics, Bid-rent Theory, Space Syntax, Visibility Graph Analysis, Retail Management, Tenanting Decision, Customer Density, Store Location, Mall Vacancy, Navigation Behavior, Architectural Design, Urban Experience, Economic Geography, Spatial Configuration.
Frequently Asked Questions
What is the fundamental purpose of this research?
The research aims to move beyond "rules of thumb" in mall management by providing a scientific, spatial, and economic rationale for store location and rent decisions to improve the economic performance of shopping malls.
What are the primary thematic areas covered?
The work covers retail economics, architectural spatial design, customer behavior and navigation, and the development of decision-making frameworks for mall developers.
What is the core research question?
How can integrated spatial design and retail economic models be used to optimize tenanting, rent, and store location to reduce vacancy and increase profitability in shopping malls?
Which scientific methods are utilized?
The study employs the economic bid-rent model to define profitability and uses Space Syntax, specifically Visibility Graph Analysis (VGA), to model and quantify customer navigational patterns and spatial accessibility.
What does the main body focus on?
The main body focuses on establishing mathematical relationships between store variables (like area and rent) and environmental variables (like customer density and visibility), validated by survey data on shopper behavior.
Which keywords characterize this work?
Key terms include Spatial Economics, Shopping Malls, Space Syntax, Visibility Graph Analysis, Tenanting Decision, and Bid-rent Theory.
What is the significance of the "critical density" concept?
Critical density defines the point where a specific store type becomes unprofitable due to low customer traffic, providing mall managers with a logical indicator of when to introduce new store categories.
How does Visibility Graph Analysis (VGA) influence mall planning?
VGA allows planners to visualize and quantify the "visual integration" of a mall layout, helping them predict where high-density pedestrian flow will occur, which is crucial for high-value store placement.
What is the "Spatial decision making model"?
It is a 2x2 grid framework that categorizes mall space based on distance from the access point and visual integration, allowing managers to assign appropriate store types to specific locations.
- Quote paper
- Sumanta Deb (Author), Dr. Keya Mitra (Author), 2015, Spatial Economics Of Shopping Malls. A Configurational Approach in Rent and Tenanting Decision, Munich, GRIN Verlag, https://www.grin.com/document/316515
