The impact of
the shopping centre
on local economy
Demand for shopping mall
The shorter work time
increased leisure time
(Gruen & Smith 1960).
Increased leisure time
brought more shopping
opportunity (The royal Town
Planning Institute 1988).
The shopping centre
has a high amenity
standards, like shops,
theatres (Beddington 1991).
Improvement of mobility.
People are satisfied with
mobility, compared with
50years ago (Test1989).
Shopping centres have
large car parks.
Customers can do shopping
in shopping malls.
Benefits of the shopping centre
Stimulate local economy and community
Accelerate population growth (Gren & Smith
Construction of the shopping mall includes
comprehensive urban development (Golledge
Create large number of job opportunity.
3000m² sale floor need about 200 staff
Improve service and quality of items with low
The shopping centre bring competition to retail
industry (Gruen & Smith 1960).
Demerits of the shopping mall
Benefits are not continued for long term because of
change of demography and surroundings (Smiley et al.
Shopping mall threaten the local market because of
its huge power. Local small retails are suffered
because of pressure of power of the large mall,
namely intensive price war (The Royal Town Planning
Public service and tax revenue are declined, as
people move to other town and tax revenue is
declined (Basker 2007)
Employment of the shopping
Workers of the new shopping mall
< loss of employee on local shops (Test 1989).
Not improve employees’ life standard.
The majority of staff is semi skilled women with
low income , few chance of promotion (Test 1989).
Shopping centres provide shopping opportunity,
various items by low price and leisure activities.
Improve local economy and society, however its
effect is short term.
Local shops are victimised by entry of shopping
Employees of the shopping centre are not
given enough wages and welfare.
Economic benefits of the shopping centre is
based on victims (local retailers, employees of
the shopping mall)
Basker, E 2007, The Causes and Consequences of Wal-Mart's Growth,Journal of Economic
Perspectives, 21(3), pp. 177-198.from the required readings of Planning the productive city
semester 2 2010.
Beddington, N 1991, Shopping centres, Butterworth architecture, London.
Gruen,V & Smith, L 1960, Shopping towns USA, Reinhold publishing corporation, New York.
Golledge, RG 1979, Consultant’s report on retail centre policy Vol.1: principles,
recommendation & problems, Town and country planning board, Santa Barbara,
Test 1989 Trouble in stores? Retail locational policy in Britain and Germany, Test, London.
The Royal Town Planning Institute 1988, ‘Planning for shopping into the 21st Century’,The
Royal Town Planning Institute, London.
Wal-mart stores, Inc. [Image] 2010. Retrieved September 3 2010, http://www.walmart.com/