Shopping malls: A good idea? Examples from Paarl, South Africa and Assen, Netherlands.
In the last decades, many new shopping malls were developed on a massive scale on decentralised locations throughout the world. Decentralised shopping malls are characterised by being outside of town and next to a high way. The expansion of shopping malls is visible throughout the world and the strongest growth is observable in new economies such as India, Turkey, Brazil, and South Africa.
The main question that rises is as following: are decentralised shopping malls a good idea? What are the pros and cons? To answer this question we go to Paarl, South Africa, a town who was faced recently with a new shopping mall and we go to Assen, the Netherlands where a new development of a large shopping area is planned for the year 2020.
In a new economy such as South Africa, many cities are confronted with new shopping malls just outside the urban sphere and rise from the ground with many throughout the country. As an example, I refer to Paarl in South Africa: The town is located in a valley and surrounded by many vineyards, it is a medium-sized town of 125 000 inhabitants and an average South African population with an average share of poor, rich, and middle-income groups. In 2005, a new shopping mall was built of 37 000 m2 shopping space next to the main highway, which connects Paarl with the metropolitan area of Cape Town.
The city centre of Paarl had a rich retail offer with stores that aimed for all income levels. There were well-known brand stores, cheaper clothing stores, and many all-you-can-buy stores. Since the completion of the mall, the retail in the CBD of Paarl were confronted with more difficulties. Especially brand related stores saw their consumers going to the mall more often resulting an outflow of brand-stores from the city centre. The new mall came with a completely new retail offer of brand stores, clothing, jewellery, toys, supermarkets, and restaurants, under one rooftop of air-conditioned space. As a result, the retail sector in the central business district (CBD) of Paarl showed no growth and a decline of brand related stores, while the mall attracted new investments and a stronger growth in the last decade in a growing South African retail economy.
The result: Only a few consumers of middle to high-income groups were visiting the CBD for shopping and the main shopping street was confronted with a decline of quality stores and a growing unilateral retail offer containing cheap, informal stores. Further possible growth in the CBD was no more and further growth was concentrated on the new mall. As a consequence: indirect social issues came through such as a stronger spatial segregation in Paarl in which high-income groups mainly visit the mall. Besides the city centre saw a growing crime and vacancy rate. Furthermore, the new mall provided an unilateral retail offer of only high quality stores and was not well accessible for public transport, which leads to less visitors of consumers without a car and consumers from low-income groups.
From this retrospect in South Africa, I would like to inform you about a new plan to build a Factory Outlet Centre (FOC) for completing in 2020. A shopping space of 22 000 m2 on the edge of the city of Assen, the Netherlands. Assen is a medium-sized town in the north of the Netherlands with around 65 000 inhabitants. The location of the new FOC is just like in Paarl planned next to the main highway, which connects Assen with neighbouring cities and the metropolitan area of Amsterdam. The location is chosen for its accessibility by car to offer expansive brands, large retail offer, and free parking. Many would probably say that such a plan could complement the city’s economy through the new retail offer, high quality of shopping and free parking. However, I argue the opposite.
Just as in South Africa, important consequences should be considered based on the urban theories of how cities work and how cities become a good working mechanism to offer a liveable space to live and work. To compare Assen with Paarl, Assen does have a relatively low income-difference and crime rate, which would, definitely mitigate the coming of a new outlet centre. Still some important negative implications can be considered in the Dutch town of Assen with the coming of the FOC.
“The success of the FOC depends on the failure of the CBD of Assen”
The city centre of Assen already was confronted with difficulties such as a high retail vacancy rate and located stores that were in trouble to survive. Just like in Paarl and as many urban studies can confirm, a new FOC has a strong potential to attract consumers from the city centre. The success of the FOC depends on the failure of the CBD of Assen. Still the CBD of Assen is difficult accessible by car and bus in which parking, bus stops and the present railway station are not successfully tuned with the present retail. If there would be no improvement in the accessibility of Assen, a new FOC is a serious threat to the present retail sector in the CBD.
Just like in Paarl, a new shopping centre will attract a large share of the potential consumers resulting to an outflow from the CBD towards the new shopping centre. Stores will close down, the chances of new investments in the city centre on the retail sector, private sector, and public sectors would be strongly decreased. Especially when one euro invested outside the CBD would prospect a larger return compared to the CBD. Besides, what would the indirect social consequences be of a growing vacancy rate in the CBD for the future on Assen’s accessibility, liveability and the cultural and public facilities of the CBD? A preliminary research initiated by the municipality and province indeed concluded a chance of a negative impact on the retail sector in the CBD of 5% more vacant retail space. This number should not be estimated in which indirect consequences of the livability of Assen’s city centre cannot be precluded.
Why is the city centre so important?
The downward trend is observable throughout the world in which the competition started between the new decentralised mall and the CBD’s retail. In the USA, the battle is over and many cities suffered of the empty shopping streets with more growing crime rates. In the UK retail space suffered from high vacancy rates in the CBD. City centres attracted less consumers and became less attractive for new investments, therefore easy targets for crime.
First, the retail sector does much more than just facilitating goods to the consumer but also do have a social value to maintain the streets livability. Shop owners and visitors keep the street safe and livable and therefore the retail sector is an important key to attract businesses, tourists and residents. Jane Jacobs beautifully said that shop owners are the main assistant of the police. They dislike broken windows and do everything in their power to keep the street attractive.
Second, the city centre is an important facility area for the disadvantaged consumer such as the elderly, youngsters, and people with a low income. People who are depending on public transport use much more the city centre to go out for social activities and for shopping. Therefore the CBD has an important role for the disadvantaged to provide them the access in the urban society.
“Companies have become footless”
Third, cities are important economic engines that contribute largely on creating new ideas and the creative sector. Companies have become footloose; whereas businesses were attracted by physical features such as infrastructure are they now more attracted by interesting and high quality locations such as a livability, attractiveness with the presence of unique features such as university, public buildings, culture, green areas, and architecture, summing up everything that supports to a high quality of living. Especially new creative economies such as the IT sector, architects, designers, artists are now more than ever attracted by qualitative urban spaces that cities can offer.
How can you win the battle against the shopping mall?
A diverse retail sector in the city centre is one of the components but there is more needed to win the battle. The most important strength of the city centre is diversity. A diverse offer of retail, bars, restaurants, public spaces, buildings, green areas and a good urban composition of streets, squares, pedestrian spaces and accessibility prevent unilaterality and makes the city centre an interesting place for businesses, tourists and residents to visit the city and want to live in the city. On the other hand, shopping malls are aimed to stimulate sales and form a unilateral offer of services and goods. When the city of Assen aims for diversity in unique urban features, a sustainable retail sector, green areas, accessibility and a well-organised urban composition, possibilities can come through to attract new investments in various economic sectors. When Assen can comply with those conditions, the city centre would be more resilient to new developments such as a new FOC outside the city centre.
How can you lose the battle against the shopping mall?
The last sentence already implied this section: When Assen can comply with those conditions, Assen can fight the battle. However, Assen is missing most factors: The city centre was already in poor conditions with a relatively high vacancy rate. Although the city centre of Assen has many historic buildings, museums, it is not well organised. Improvements are needed in public transport and parking space. As well in new design, and smart urbanisation to make fully use of the rich offer that Assen has in green areas and historic heritage than can complement the retail sector. More effort is needed on diverse street areas of culture, retail, and historic buildings instead of zoning the available facilities.
To conclude, the city centre of Assen could be considered as vulnerable and a new FOC will most likely attract many visitors from the city centre towards the new shopping mall. The FOC has its advantages of good accessibility by car and convenient shopping which is a large retail offer, all located in one compound. The attraction of new investments for the city centre would be more difficult in the future and would demand more effort from the municipality and other governments of Assen to support the city centre. Chances to excel for Assen city centre are definitely there to attract the car-borne consumer to visit the city centre. From my point of view, it will not be my plan to keep the car-borne consumer on the highway and to put him in a so-called FOC.
No, instead I would offer an easy and cheap way to visit the city centre of Assen by shuttle service along the woods of Assen to the city centre of Assen full of culture, museums, local history, restaurants, bars, hotels and of course a diverse interesting retail offer.
-Cachinho H 2014. Consumerscapes and the resilience assessment of urban retail systems. Cities 36: 131-144.
-Jacobs J 1961. The death and life of great American cities. New York: Vintage Books.
-Ozuduru BH, Varol C & Ercoskun Yalciner O 2014. Do shopping centres abate the resilience of shopping streets? The co-existence of both shopping venues in Ankara, Turkey. Cities 36: 1-13.
-NOS (Dutch national news) 11th February 2016. Assen approves the coming of the FOC. http://nos.nl/artikel/2086351-assen-stemt-in-met-komst-factory-outlet-center.html
-Paarl Mall 2015. http://www.paarlmall.co.za/
-Province of Drenthe 2016. Final research report FOC Assen [Dutch] http://www.provincie.drenthe.nl/publish/pages/112414/eindrapport_foc_assen.pdf