Organized retail formats are growing twice as fast as their traditional counterparts. But, in spite of that, the mall management is concerned about the rising rate of vacancy leading to economic unsustainability. The reason for high mall vacancy rates can be ascribed to faulty tenant placement and irrational rental plan.
Existing studies on the tenant-mix-decisions focus more on inter store externality and not on the spatial logic. Moreover, normal industry practice follows rule-of-thumb instead of any scientific approach. A bid-rent model for profit maximization of individual stores is solved to identify the relationship between area allocation and rental decision with the customer density at that point.
The customer density in turn depends on the accessibility and explained through visibility graph analysis and agent based simulation. The findings support the superiority of configurational characteristic over metric distances. A model for profit maximization of the entire shopping mall is proposed to explain the tenanting, rental and anchor rent subsidization decisions based on logic of spatial configuration. Space planning, in this way, can be considered as a tool for strategic decision making instead of an accommodator of functions.
Table of Contents
1 INTRODUCTION
1.1 PREAMBLE
1.2 THE CHARACTERISTICS OF SHOPPING MALL AS A STUDY AREA
1.3 BACKGROUND OF THE RESEARCH
1.4 RESEARCH OBJECTIVE
2 NEED FOR STUDY OF INTERDISCIPLINARY WORKS ON RETAIL MANAGEMENT AND SPACE SYNTAX
2.1 STUDIES ON THE LOCATION AND RENT DECISION OF STORES IN A SHOPPING MALL
2.1.1 Significance of Tenant Mix in a Shopping Mall
2.1.1.1 Tenant mix policy
2.1.2 Strategic significance of Inter-store externality for describing and analysing positioning of stores in shopping malls
2.1.2.1 Managerial solutions for internalizing externalities
2.1.3 Configurational studies on Shopping Malls and application of the urban spatial theories
2.2 HUMAN NAVIGATION PATTERN AND SPATIAL CONFIGURATION
2.2.1 Space syntax measures and human navigation patterns
2.2.2 Relationship between navigation and visibility
2.2.2.1 Through Vision and its significance in Visibility Graph Analysis
3 RESEARCH APPROACH FOR ACHIEVING OBJECTIVES
3.1 BID-RENT ANALYSIS
3.2 SPACE SYNTAX ANALYSIS
3.2.1 Visibility Graph Analysis
3.2.2 Agent Based Simulation
3.3 MEASURING NAVIGATION PATTERN AND BEHAVIOURAL FACTORS IN A SHOPPING MALL
3.3.1 Sample
3.3.2 Survey Instrument
4 ANALYSIS AND DISCUSSION
4.1 ESTABLISHING RELATIONSHIP BETWEEN STORE AREA, RENT PER UNIT AREA AND CUSTOMER DENSITY
4.1.1 The relationships of decision variables for changing tenant store variables
4.1.2 The logic of tenanting decision
4.2 ANALYSING THE SYNTACTIC LOGIC BEHIND CONFIGURATION AND NAVIGATION
4.2.1 Visibility Graph Analysis for describing configuration
4.2.2 Visibility Graph Analysis and Agent based simulation
4.3 BEHAVIOURAL FACTORS BEHIND NAVIGATIONAL PATTERNS IN A SHOPPING MALL
4.3.1 Identification of behavioural factors behind response towards visibility
4.3.1.1 Description of Research variables
4.3.1.1.1 Shopping Orientation
4.3.1.1.2 Shopping Habitat
4.3.1.1.3 Attitude
4.3.1.2 Conceptual model for navigation behaviour
4.3.1.3 Demographic characteristics
4.3.1.4 Factor Analysis of the Model constructs
4.3.1.5 Model fit and Hypothesis Testing
4.3.2 Measuring Navigation Patterns
4.3.3 Navigational behaviour and shopper type
4.3.3.1 Tukey HSD Test
4.3.3.1.1 Post-hoc Tukey-HSD test results
4.3.3.2 4.2.2.2 Scheffe’ multiple comparison
4.3.3.3 4.2.2.3 Bonferroni and Holm multiple comparison
5 CONCLUSION
Research Objectives & Key Themes
This research aims to develop a comprehensive framework for optimizing tenant mix and store location strategies in shopping malls by integrating bid-rent analysis with space syntax methodology. The study seeks to address high mall vacancy rates by moving beyond conventional rule-of-thumb approaches towards a scientific rationale that links spatial configuration, visibility, and consumer navigational behavior.
- Economic analysis of store location, tenanting decisions, and optimal space allocation in shopping malls.
- Application of Visibility Graph Analysis (VGA) to quantify how spatial configuration influences customer movement and density.
- Exploration of individual shopper behavior, including shopping orientations, habitats, and navigational preferences.
- Development of a spatial decision-making model for mall management to enhance both functional efficiency and economic performance.
Excerpt from the Book
1.1 Preamble
“We shape our buildings, and afterwards our buildings shape us.” Sir Winston Churchill is reported to have used this widely used aphorism twice: first in 1924 at the Architectural Association of London and then in 1943, requesting to re-construct the bombed-out British Parliament exactly as before. Churchill’s intuition regarding the influence of built space on humans no doubt deserves credit. But, a comparable belief of the influence of buildings or more specifically built environment on human behaviour is very common in the Architecture and Urban Design literature.
Modernist Architects of the early twentieth century perceived themselves not only as designer of buildings but also of utopian societies. They tried to replace the popular notion of “God as Architect” with the myth of “Architect as God”. Le Corbusier, one of the most significant architects of that period, believed that, a “building is a machine for living in” and tried to represent the concept in the buildings and spaces he designed with the conviction that an Architect, as an artist, should be free from the demands of the population. This period observed a significant shift from client preferences to architectural fashion.
The utopia envisaged by Le Corbusier and his followers failed to acknowledge not only the preferences of the inhabitants of built spaces but also the impact of those built spaces on the public users: how they behave and interact in that environment. Many of these projects failed; abandoned and eventually demolished because of the social problems they created. According to Newman (1972), in case of Pruitt-Igoe, (which was supposed to provide a better environment to the inhabitants through design interventions) residents felt ignored and vented their frustration on the environment (the issue is debatable, but explains the failure of the project).
Summary of Chapters
1 INTRODUCTION: This chapter contextualizes the importance of understanding the relationship between built environment and human behavior, highlighting the current challenges in shopping mall management such as high vacancy rates and the need for a scientific design rationale.
2 NEED FOR STUDY OF INTERDISCIPLINARY WORKS ON RETAIL MANAGEMENT AND SPACE SYNTAX: This chapter reviews existing literature on tenant mix policies, inter-store externalities, and configurational urban theories, establishing the theoretical gap that this research intends to fill by bridging retail management with space syntax.
3 RESEARCH APPROACH FOR ACHIEVING OBJECTIVES: This chapter outlines the methodology, combining bid-rent analysis for economic modeling, space syntax and agent-based simulation for spatial analysis, and a structured survey to capture consumer behavioral patterns.
4 ANALYSIS AND DISCUSSION: This chapter presents the empirical results, establishing the relationships between store area, rent, and customer density, and demonstrates how different mall typologies influence movement patterns through visibility analysis and navigational intent models.
5 CONCLUSION: This chapter synthesizes the research findings, proposing a spatial decision-making model for mall management that integrates economic functionality with configurational design to address operational challenges.
Keywords
Shopping Malls, Tenant Mix, Bid-Rent Analysis, Space Syntax, Visibility Graph Analysis (VGA), Consumer Behavior, Navigational Patterns, Retail Management, Store Location, Spatial Configuration, Mall Vacancy, Agent Based Simulation, Customer Density, Architectural Function, Mall Typologies
Frequently Asked Questions
What is the core focus of this research?
The research focuses on creating a scientific framework for shopping mall management to optimize tenant mix, store location, and rent allocation based on spatial configuration and customer density.
Which fields of study does this research bridge?
It integrates retail management and economics with architectural spatial theory, specifically utilizing space syntax and environmental psychology.
What is the primary objective of this work?
The primary objective is to move from rule-of-thumb planning in shopping malls to a data-driven approach that correlates spatial layout and visibility with consumer movement and economic viability.
What scientific methods are utilized?
The study employs bid-rent modeling for economic analysis, Visibility Graph Analysis (VGA) and agent-based simulation for spatial/behavioral analysis, and structural equation modeling for analyzing survey data.
What does the book cover in its main sections?
The main sections cover the background of mall design, literature review on retail and spatial configuration, detailed methodology, a comprehensive analysis of the proposed models, and a concluding framework for spatial decision-making.
Which specific keywords define this study?
Key terms include Shopping Malls, Tenant Mix, Space Syntax, Visibility Graph Analysis, Consumer Behavior, and Retail Management.
How does Visibility Graph Analysis (VGA) impact mall design?
VGA provides a quantitative method to describe spatial configurations, allowing designers to predict how people will naturally move through a mall and where they are likely to congregate, which directly informs optimal store placement.
What is the significance of the "tenant mix" in this context?
Tenant mix is treated as a strategic management decision that must leverage inter-store externalities to maximize revenue and sustainability, rather than being determined solely by intuition or informal guidelines.
Why are consumer navigational preferences important for mall developers?
Understanding these preferences allows developers to design spaces that naturally guide shoppers to desired areas, thereby increasing the probability of unplanned purchases and overall mall engagement.
How does the research address the issue of mall vacancy?
It suggests that vacancy is often a result of poor tenanting decisions and faulty spatial design, and proposes a framework that aligns the physical configuration with economic potential to reduce vacancy rates.
- Quote paper
- Sumanta Deb (Author), Prof. Keya Mitra (Author), 2016, Economic rationale for visual configuration of space for rent and tenanting decision in shopping malls, Munich, GRIN Verlag, https://www.grin.com/document/347134
