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Chapter 1- Introduction
Prologue
The purpose of this research is to investigate the connection between big-box store
development and local businesses in small urban areas. While focusing on Bowmanville,
Ontario, I will be taking a case study approach to find out the affects that big-box stores have on
small businesses and urban growth in the area. The following research will focus on the reasons
as to how, why and what factors are contributing to big-box development in Bowmanville and
the challenges that they propose on small businesses in the downtown.
The central question guiding this research is; how does the introduction of big-box stores
impact urban growth and retail development in small urban areas? From this question, I will
achieve the following objectives: First, is to critically examine scholarly journals relating to big-
box development. Fulfillment of this objective will involve a review of academic literature
pertaining to retail geography, urban growth and local economic development. These categories
will connect the development of big-box stores to geographic research in areas such as urban and
economic geography.
Second, is to determine why big-box stores were planned for the outer edge of
Bowmanville away from the downtown core. Achievement of this second objective will involve
the evaluation of municipal planning documents regarding commercial development. It will also
be done through interviews with the head of the planning department and commercial
development officer.
My third objective is to analyze the challenges associated with major retail development.
This will be accomplished through one-on-one semi-structured interviews with the local and
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regional councillors, the manager of the Bowmanville Business Improvement Association and
the head of the Clarington Board of Trade. This will examine various challenges associated with
retail development such as impacts on population growth and economic development.
My final objective is to examine how big-box stores impact small businesses in the
downtown through interviews with the manger of the BIA as well as distributing surveys to
downtown business owners. By fulfilling this objective, I will determine how downtown
businesses are impacted by big-box stores. I will also find out if certain retail businesses such as
clothing stores are affected by major retail developments than other types of stores.
I have chosen to employ a case study approach for this thesis which will explore the
specific study area of Bowmanville, Ontario. As a result, a case study provides a useful approach
to addressing the impacts and challenges that big-box stores have on small urban areas. In recent
years, Bowmanville has seen the addition of big-box stores on the retail landscape. Since the
early 2000s, there has been a rapid expansion of large-scale retail development particularly in the
west end of Bowmanville. Since the recent development of large retail outlets like Wal-Mart, I
was curious of how it not only affected urban growth but also how it impacted local businesses
as well. This has changed not only the urban landscape, but also the retail landscape as well. The
main goal of this research is to critically examine how the introduction of big box stores impacts
urban growth in the small urban area of Bowmanville.
Structure of the Thesis
In terms of organization, the structure of the thesis will take on a comprehensive
approach to exploring the effects the big-box stores have on small urban areas. From there, I will
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narrow my focus of my thesis on Bowmanville and the challenges and impacts that big-box
stores have on the downtown businesses as well as planning policies.
I will begin this section by defining the impacts that big-box stores have on small urban
areas, as well as how it affects urban growth trends in these areas as it relates to my research.
Once this context is established, I will proceed to situate these impacts and my research within a
review of academic articles relating to big-box stores, particularly within retail landscapes, urban
growth and local economies (Chapter two). Within the literature review, my research falls under
three categories: retail geography, urban growth and local economic impacts. In Chapter three, I
will move to a profile on my study area which covers the town of Bowmanville. In this same
chapter, I will also explain the importance of a case study; review my methods and the rationale
for my interviews and surveys. From here, I will present the findings of my research and
examine how they connect to my research objectives (Chapter four). In Chapter five, I will
proceed to analyze these findings by identifying the impacts associated with big-box
development in Bowmanville and determine the possible solutions to these impacts. This section
will also compare the results of my research to the academic literature and propose
recommendations to integrate big-box stores into Bowmanville’s changing retail landscape. To
conclude, I will provide a brief summary of my overall research, evaluate my objectives, reflect
on my research, discuss any limitations, identify areas for further research and emphasize the
importance of doing this research (Chapter six).
Before I begin, I will provide a timeline on my research process. I was granted approval
for this project in June of 2011. I began the review of scholarly articles in September and
October of 2011. I received ethics approval for my primary research in early December. I began
interviews in early January of 2012 and ran until the twenty-third of that month. My surveys
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were distributed to downtown retail businesses in early January and were returned to me between
early to mid-February of 2012. The research will hope to gain more knowledge about how big
box stores contribute to urban growth in small urban areas. Also, how location of big box stores
plays a factor in impacting urban sprawl. Another benefit is learning how local businesses are
affected by major retail development.
Impacts on Planning Policies
Planning policies have been impacted by the introduction of big-box stores because of
zoning restrictions and land use. Big-box stores are connected to impacts on urban growth and
sprawl. Grant and Perrot (2011) stated that big box stores go against the notion of good planning
because they require a certain amount of land for the retail site as well as parking spaces. Before
one attempts to analyze the impact of big boxes on more traditional retail forms, it is important to
define the term "big-box retailing." In general terms, the big boxes are large-format stores that
typically range in size from 20,000 to over 150,000 square feet (Jones & Doucet, 2000). They
lead to new types of commercial clusters called power centres and power nodes (Hernandez &
Simmons, 2006). Power centers generally contain 250,000 square feet to 1 million square feet of
retail space (Filion, 2001). Big-box stores are a planning issue because they consume large
amounts of land to build these developments. This affects the construction of infrastructure such
as roads and parking lots because big-box stores are typically auto-oriented retail developments.
These stores are typically associated with heavy traffic around these areas. Urban sprawl is a
driving force behind retail development because of accelerated population growth and unsustainable
land consumption.
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Big-box development has challenged planning policies regarding size and height. These
impacts typically were not anticipated in zoning and development regulations developed prior to
the meteoric rise of such large-scale retail (Hernandez, 2003). As a result, many communities are
re-working policies and development regulations to provide better guidance in making decisions.
The Changing Local Economy
Existing literature explains that the recent introduction of big box stores in Canadian
cities has altered the competitive retail landscape. The rapid restructuring of the urban retail
landscape began in the early 1990s with the introduction of big box retailers (Jones & Doucet,
2001). Changes in retail landscape impact local economies because it leads to the departure of
small businesses.
The most visible impact is the disappearance of small, locally-owned businesses located
in downtowns. Small businesses struggle to compete with big-box stores because of the notion of
long hours and lower prices. In some communities they have been viewed as an antidote to a
declining economy, promising new sales tax revenue and jobs (Lowe, 2005). The integration and
application of these technologies permit big-box retail outlets to generate lower product prices
and margins, while still maintaining an acceptable level of profit. These retail formats have
introduced a new form of competition to almost every retail category (Jones & Doucet, 2000).
Collectively, they have significantly altered the map of Canadian retailing.
Understanding the broader context of the impacts of big-box stores on small urban areas
such as challenging planning policies and changing local economies are an important aspect in
my research. This helps examine factors behind big-box development such as urban growth and
sprawl as well as the changing dynamics of local retail economies. The changing local
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economies and impacts on urban growth and sprawl will be explained in greater detail in Chapter
Two.
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Chapter 2- Literature Review
Big-box stores according to Hernandez and Simmons (2006) are retail outlets that are
several times larger than the average store of the same sector. These stores are also called
‘category killers’ because customers were attracted to the prices or selection at a particular store.
Big-box stores have changed the way people view small urban areas. The recent introduction of
big box stores in Canadian cities has altered the competitive retail landscape. It began in the
early 1990s with the introduction of big box retailers (Jones & Doucet, 2000). The changes in
retail landscape and urban growth are interconnected through big box stores contributing to rapid
urban sprawl as they are normally associated with suburban expansion. Big box stores lead new
types of commercial clusters called power centres and power nodes. They challenged planning
policies and the changing retail hierarchy in North America. With urban growth and changing
retail structure, the most visible impact of big box stores is the disappearance of small, locally-
owned businesses (Hernandez &Simmons, 2006).
The topic of big box stores and urban growth fits into geographic literature regarding
urban and economic geography. The literature review seeks to critically analyze scholarly works
related to the concepts of retail development and urban growth in small urban areas, and more
specifically, how retail developments impact downtown businesses and local economies. First, I
will analyze scholarly contributions focusing on retail geography. Secondly, I will focus on how
retail geography is tied to urban growth and sprawl which is the main concept of the thesis.
Third, local economic impacts regarding big box development will be indentified. I will
conclude by indentifying any of the gaps within existing literature will be addressed which will
be helpful in raising questions for my research design and methodology portion.
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Retail Geography
The main themes in retail geography evaluate how the contemporary retail landscape
changed over time and how planning is connected to retail development. The most important
contribution to the concept of retail geography is the contemporary works of scholars Jones
(2000), Doucet (2000) and Hernandez (2003). Their works addressed how big box stores were
involved in the evolution of Canada’s retail landscape and how urban planning is associated with
retail geography by explaining various factors such as location and land use.
In the historiography of American consumer culture, nineteenth-century department
stores have long stood as harbingers of the rise of a national commercial society (Howard, 2008).
The retail landscapes of urban environments reflect the immense diversity of social class,
incomes, lifestyles and business formats that build cities. Scholar Ken Jones (2000) states that
Canada’s retail geography is a product of two distinct retail systems- the planned shopping centre
hierarchy and the remaining unplanned retail areas. Arnold & Luthra (2000) argue that large
format retailers affect the differences of demographics in consumers, rapid growth in market
share and decline in various commercial sectors. Consumer preference plays a role in the
evolving retail landscapes. This increasing mobility has allowed consumers to exercise a greater
ability to choose between shopping centres (Guy, 2007). According to Howard, downtowns have
been succeeded by the ubiquitous strip mall, the suburban shopping centre and then big box
stores (2008). Big box stores are a relative recent phenomenon which is a part of the modern
retail landscape shifting from downtowns to shopping centres to strip malls. Big box stores are
responsible for the decentralization of the retail structure by encouraging out-of-town retail
(Lowe, 2005). According to Gruen, to survive this combination of oversupply and under-demand
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in the '90s, shopping center owners and managers will need to strive for market dominance as
never before (1993).
The notion of big box stores contributes to the evolving contemporary retail geography.
Big box stores have contributed to the competitive market by drastically altering the modern
retail landscape. According to Howard, department stores adopted modern, big-store, corporate
business methods to flourish in the early post-World War 2 period (2008). Hernandez (2003)
argues that over the last decade- merger, acquisitions and internationalization have characterized
most developed retail geographies; driven by a range of factors such as increased competition
and saturation in existing markets many major retailers have adopted internationalization
strategies. This means that most big-box stores like Wal-Mart and home depot have become
large, international dominant retail chains. Harris (2006) argued that national chains not only
changed how America shopped for retail goods but changed how goods were sold. They also
changed the distribution structure of retail trade. Big-box stores like Home Depot challenge the
supply-chain model and buying direct-from-manufacturer to secure goods at low prices
(Hernandez, 2003). Evans-Cowley (2008) states that cities need to understand the neighbourhood
effects of big box retailers. They should ask where large-scale retail would is most appropriate in
this community and what will the impact be on other retail areas in the community? Since their
introduction, big-box stores are increasingly becoming supercentres thus increasing the
competitive present retail landscape and mixing retail uses. Since 1990, Wal-Mart has been
transforming its traditional department stores into supercentres (Hicks, 2009). A supercentre
according to Guy (2007) is a non-food store that sells clothing, grocery items and other retail
goods such as electronics. Canada’s retail landscape has undergone a significant transformation
and rapid evolution that has questioned the vitality of large parts of the existing retail structure.
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Big box stores not only altered the retail hierarchy but it has challenged planning policies
in terms of land use and aesthetics. Planners across the country have developed regulatory
strategies to try to control the location, appearance and impact of big-box retail in their
communities (Evans-Crowley, 2008). In 2011, Grant and Perrot argued that big box stores defy
the notion of good planning because power centres require a certain amount of land for the retail
site as well as parking spaces. Hernandez and Simmons (2006) assert that urban planners have
been unable to enforce retail planning restrictions as huge power retail concentrations have
emerged in unexpected locations across Canada. In 2005, Lowe argued that retail developers
were prepared either to buy sites outright, or to go into partnership with the agencies and inject
funds into improving sites and providing infrastructure such as drainage and new roads. In return
for the investment, they were able to build stores which might not in the normal way be allowed
through the planning system. Also, some communities have adopted a higher level of
architectural treatment and regulations to ensure that superstores relate better to their urban
environment (Sampson, 2008). The size of big-box stores is also a major planning issue.
Hernandez (2003) explained that big-box stores typically range from 50,000-135,000 square feet.
Aesthetics are a concern for urban planners. The physical appearance of off-centre retailing has
been much criticised: essentially most stores are large, single-storey, concrete boxes with a
prominent logo to announce the identity of the retailer, surrounded by an area of tarmac required
for car parking and delivery access (Nunn, 2001).Guy (2007) states that the developer is
criticized either for the ‘alien intrusion onto the urban landscape or if the building is adorned
with intricate building or colourful cladding. Many cities have regulations regarding signage and
land use. Big box retail development can be retained in more attractive settings through better
urban design and landscaping of parking lots.
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Location plays a major role in retail development. Jones and Doucet (2000) argue that of
all big-box locations, 59% are on industrial lands and close to expressways. Planners and
developers usually locate big box stores near highways or major roads for easy access. Many
municipalities have found that their goals of controlled commercial competition within a
commercial hierarchy have been outflanked by new retail developments in distant municipalities
and unconventional locations, such as redeveloped industrial sites or areas zoned for warehouses
(Hernandez &Simmons, 2006). Big-box stores are based on low margins and high sales per
square foot that are aided by low land costs and labour inputs. These retailers occupy highly
accessible expressway/highway locations (Jones, 2000). A typical commercial cluster called a
power centre or power node would be found at the edge of a city. Power centres consist of a
cluster of big-box stores within close proximity to each other (Jones & Doucet, 2001). The
number of power nodes has increased substantially in the last decade, particularly in suburban
areas (Hernandez, 2003). Most power centres are built in industrial areas and are situated near
major roads or expressways for accessible retail landscapes.
Inadequate research has been done on how urban planners are connected to retail
geography. There is a significant focus on the history of retail geography, particularly on the
changes in the contemporary retail system from World War 2 until present day. Studies tended to
focus on particular elements associated with the retail system such as consumer behaviour and
demographic shifts. Most of these studies adopt a micro-based approach. The literature focused
on the broad spectrum of retail geography showing how it evolved over time from downtowns to
shopping centres. A few articles focused on how location of big-box developments is a factor in
changing retail landscapes. However, more articles focused on the planning approach of big-box
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developments in urban areas such as utilizing land use and zoning regulation. More research
could have been contributed to how urban planning is related to retail geography.
Urban Growth and Sprawl
The changing retail geography is connected with urban growth. The common argument
stated in these journals is that big box stores are the driving force behind urban sprawl because of
their unsustainable land consumption. Peiser (2001) states that urban sprawl is the ‘gluttonous’
use of land, uninterrupted monotonous development, leapfrog or scattered development and
inefficient use of land. There are several causes of urban sprawl such as the building of new
middle-class subdivisions, shopping centres and industrial parks. These land uses accelerate
urban sprawl because of land consumption away from the urban centre.
As discussed in the previous section, big box stores are normally located at the edge of
urban environments in areas called ‘edge nodes.’ Sprawl is associated with big-box development
because large vacant sites needed for development are typically found at the edge of town. Retail
developments, hypermarkets and other large-format retail are now built outside of the city centre
(Guy, 2007). Jones and Doucet (2001) argue that the growth of big boxes illustrates the form of
retail development that results from permissive land use policies. Evans-Crowley (2008) explains
that new big box stores are being constructed in Greenfield areas which are undeveloped pieces
of land. Retailing in suburban areas, in contrast, it had a narrow function restricted largely to
providing everyday goods to local people (Guy, 2007). Filion (2009) argues that big box stores
are unlikely to favour locations within nodes when plentiful sties with comparable automobile
access and abundant parking space are available at a lower cost. The location of big box stores in
edge nodes allow for low-density development that promotes car use (Nunn, 2001). Twice as
many opened in the suburban fringe as compared to the equally populated central area (Jones &
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Doucet, 2000).Turner in 2007, described land consumption of big box stores as it takes as given
the availability of a remote retail sector to anyone willing bear the cost of driving to it, and
considers the entry decision of a local retailer, along with decision of immigrants to locate in a
neighbourhood on small or large lots. Large lots provide utility to their owners, but serve to
reduce the number of people in the neighbourhood. Most big-box stores consume not only for the
building itself but also for parking lots and roads. Guy (2007) argues that the use of cars for
shopping also encourages single-purpose visits to large stores in which many different items are
purchased. He also states that big-box stores should be accessible by public transit, bicycle or
foot and should not lead in an increase in private car travel which could lead to an increase in
urban sprawl.
The factors behind urban growth and big box stores include accelerated population
growth. Lowe (2005) stated that large-scale retail developments were built in connection with the
development or expansion of towns. Big-box stores are used to serve newly-developed
residential areas and are likely to exceed city centre development which decentralizes the
residential area from the city centre (Nunn, 2001). Rapid population growth is associated with
the introduction of big box stores which introduces a new consumer base (Howard, 2008). Filion
(2009) explains that the amount of growth the nodes face is contingent on prevailing
metropolitan-wide development trends and the nature of the growth reflects these trends. It
means that the rapid population growth in suburban areas leads to new retail developments and
urban landscapes.
The development of big-box stores is posing a threat in the twenty-first century to small
urban areas. Hernandez (2003) states that big-box stores look to smaller urban areas for
continued growth. Haltiwanger et al (2010) argue that big-box stores place their mark on rural
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countryside as they stand out as noticeable development along empty stretches of land. There are
various concerns regarding small urban areas such as the protection of rural countryside or
control of the use of automobiles (Guy, 2007). This is controversial because big-box stores tend
to be situated on farmland. In the future, a large proportion of retail space will be occupied by
big boxes and there will be a gradual extension of power centres into smaller urban markets
(Hernandez &Simmons, 2006). Towns fear that big box stores like Wal-Mart will be a magnet
for more land-hungry stores, subdivisions and will hasten the deterioration of the commercial
centre (Peiser, 2001). Filion (2009) argues that small urban areas will grow faster with low-
density land uses and a rigid specialization of land uses caused by power nodes. Howard (2008)
sates those studies of rural consumers challenge the notion of a homogeneous, urban-focused
consumer society. Consumer society not only came later to rural areas, it also had a different
meaning. Areas with a heterogeneous rural-urban population distribution are likely to face
impacts regarding big box centres (Hicks, 2009). Big-box stores pose a threat to small urban
areas by promoting urban sprawl and growth. They also encroach on rural countryside.
Filion (2009) explains that Smart Growth is a solution to reduce car dependency in big-
box suburban areas. It calls for forms of urbanization that are more compact, transit friendly,
conducive to high-quality urban life, and less environmentally damaging and infrastructure
hungry than present urbanization patterns. Above all, it is sprawl, characteristic of North
American urban growth since World War 2, which is targeted by the smart growth movement
(Filion, 2009). At some point in time they dominate the provision of new shopping centres in
sprawling suburbs.
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Major gaps in the research include that there were only a few articles that addressed how
big box stores were a product of urban sprawl. Some articles stated that big box stores do not
accelerate urban sprawl but rather how they are contribute to urban sprawl through rapid
consumption of land and countryside. Also, most articles tended to focus on suburban areas in
large cities like Toronto rather than small urban areas themselves. Only a few articles discussed
the impact of big-box stores on urban growth in small urban areas. Little research has been done
on how population growth in small urban areas is connected to the development of big box retail.
Overall, the articles pertaining to big box stores and how they are related to urban sprawl and
growth had conflicting views on this concept.
Local Economic Impacts
As a result of urban growth and sprawl, local economies are facing competition from big
box stores for business. One of the most noticeable economic impacts is the departure of
traditional “mom and pop” retailers. Hicks (2009) discusses that small businesses are non-chain
or small chain stores selling traditional retail items. This type of retail is commonly found in
small urban areas. Howard (2008) explains that this is accepted wisdom today—something
obvious to anyone who has walked or driven down any of the countless "Main Streets" of small
towns across the United States in recent decades. Empty red brick or stone buildings with faded
signs and stained facades stand as a memorial to a past era of downtown retailing (Howard,
2008). Jackson (1996) states that small towns have seen their shopping districts wither and die.
Old businesses are boarded up and abandoned and other structures are poorly maintained in
downtowns. The impact of big-box stores on downtowns is increased vacancies and neglected
urban landscapes. Haltiwanger et al (2010) found that there was a substantial negative impact of
big-box entry and growth on the economic growth at both single unit and especially smaller
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chain stores. Evans-Crowley (2008) argues that on average, four small retailers close five years
after a new Wal-Mart opens. It is found that big box stores accounted for at least 50% of the
decrease of small retailers. According to Lowe, power centres in edge nodes are severely
affecting downtowns. It is considered important that cities make themselves attractive in the face
of what was seen to be unfair competition from out-of-town centres with easier accessibility
(2005). Big box retailers such as Wal-Mart are challenging local retailers and changed the way
people shop for commercial products because they offer one stop-shopping unlike downtowns
(Harris, 2006). They contribute to the decline of traditional retail districts such as the main
streets of small urban areas. The rapid decline of traditional downtowns was due to steady
decentralization of the population over the decades, has shifted the market emphasis of
downtowns towards suburban residents (Robertson, 1997). Howard (2008) argues that local
businesses are disappearing because of the competitive nature of big-box chains in local markets.
Guy (2007) stated that big-box stores weakened the local monopolies of independent retailers in
urban areas. In order for a downtown business to be successful in a competitive retail
environment, downtown retail cannot exist in a void. A solution to this problem according to
Peiser (2001) is that in smaller towns, big-box retail development can be moved to downtown
locations to reduce the negative impact that suburban locations have on downtown vitality. The
most important policy for protection of downtowns is support for the small retailer and the
independent sector (Guy, 2007). A strong local economy requires an organic relationship to the
downtown is necessary if downtown retailing is to prosper. The most visible impact of large
format retailers is the decline of the community economy and economy of the local markets.
The reason why local businesses are leaving is the result of the sales model of big-box
stores. Price competition between big-box stores and small businesses is a huge factor in the
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sales model of large-scale retailers. Big-box stores are based on the sales model that is centered
on high customer-service and everyday low pricing (Hernandez, 2003). Entry of supercentres not
only brings lower prices from these retailers but through competition reduces prices of
competing businesses (Harris, 2006). The reductions in costs achieved through innovations in
logistics and operations within big box stores put pressures on the retail margins throughout the
retail system (Hernandez & Simmons, 2006). Evans-Crowley (2008) argues that big-box retailers
of all sizes are finding customers who want the convenience of one-stop shopping and low
prices. Hernandez states that a relatively small number of foreign-owned big box stores can
dominate local retail markets and gain a considerable national market share (2003). He added
that the sales model of big-box retailers is through a cannibalization strategy that aims to secure
markets through contagious organic growth (2003). Small businesses feared that liberalized
trading hours would ruin local businesses and lead to American-style big-box retailing (Jackson,
1996). The main economic impact, according to Guy (2007) is the loss of trade in pre-existing
stores and centres caused by consumers using a new store, particularly outside of local
economies. Superstores tend to take trade from town centres. There is an increased leakage of
profit associated with big-box stores because very little profit from major retail chains goes into
the local economies (Arnold, 2000). Hicks (2009) discusses that the net effect on retail sales is
less than the total sales of a new Wal-Mart clearly suggesting that some existing retail trade is
lost to a new Wal-Mart. Sampson (2008) argues that big-box formats have a positive impact on
sales revenue and per-capita spending in the retail sector. Many traditional retailers have feared
the price competition from big box retailers because of their lower prices leading consumers to
shop elsewhere. Big-box stores allow for locally-owned businesses to suffer because of their
sales model.
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Big Box stores tend to erode the social capital and disrupt revenue of local goods in small
urban cities. Harris (2006) explains that big box stores such as Wal-Mart often result in a loss of
social and civic capital. Local governments may have to balance loss of social capital with
potential source of increased sales tax revenue. What governments fail to calculate is that sales
tax gains in one area are often offset by losses from those existing retailers who are less able to
compete as well as cost of servicing infrastructure (Gruen, 1993). In the 1970s and 1980s,
control from the federal and state governments appears to have been more negligent to build up a
tax base, such that some suburban communities allowed off-centre developments in order to
increase tax revenues (Guy, 2007). Within the metropolitan area, power retail has eroded the
traditional relationships between community markets and the set of retail facilities they support--
by serving customers dispersed across wider regions (Hernandez & Simmons, 2006). Jackson
argues that organized labour believes that expanding legal shopping hours would introduce part-
time employment and cheap wages and cheaper transportation as a result of eroded social capital
(1996). Most of the social benefits are paid at the state and federal level, but local communities
also feel effects through expenditures in the city or county health department, affordable housing
programmes, and public transit (Evans-Crowley, 2008). Big-box stores have put a strain on local
governments because communities feel the effect of loss of social capital and big-box stores have
eroded the relationship between community and the company.
Some gaps in the research include job creation from big-box stores; additionally, the
impact of big-box stores on the local downtown economy and downtown businesses themselves.
There are also a limited number of articles on how the sales model of big box stores contributes
to the decline of small businesses in small urban areas. The research mostly focused on the
impact of employment patterns in small urban areas rather than small business impacts. Some of
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the research tended to focus on employment patterns and the wage structure of big-box stores
which is not part of my research. Most studies focused on their impact on small markets, not on
the small-scale point of view. There is a significant focus on Wal-Mart because this superstore
chain has proven to have significant local economic impacts on small urban areas. Inadequate
research has been done on the direct economic impacts of big box retailers on downtown areas.
Also, only a few articles discussed how big-box stores contribute to the loss of social and
economic capital. Overall, the research did not focus on job creation from big-box stores and
direct impacts on the downtowns themselves.
Summary
This literature review was useful in explaining how the concepts of retail geography,
urban growth and local economic growth were connected to the introduction of big box stores in
small urban areas. These concepts were interconnected throughout the literature review because
some concepts tended to overlap. For example, retail geography and urban growth in terms of
location, planning issues and land use. Scholarly articles by Jones and Doucet (2000), Hernandez
(2003 &2006) among others demonstrated how the changing retail landscape is a driving force in
urban sprawl and changing urban environments. They also found that protection of downtown
retail environments is vital for the survival of traditional retail environments.
This section provided more insight into how they retail landscapes are connected to urban
growth and local economies. Big-box stores were involved with the contemporary shift in retail
geography. Planning challenges included location and land use policies regarding size and
parking. They also contribute to urban sprawl by being placed on the rural fringe of small urban
environments. The most significant threat to local economies is the disappearance of
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independently owned-businesses. Overall, the research was well done. However, most articles
tended to focus on large urban areas such as Toronto instead of small urban centres. More
research could have been done on how big box stores affect local economies and small
businesses.
I intend on investigating how big box stores affect urban growth and downtown
businesses in a small urban area such as Bowmanville. Particularly, how does sprawl change the
urban retail landscape? A concluding statement by Hernandez and Simmons (2006) explain that
rapid growth or a change in accessibility within the urban market provides the opportunity for a
new retail form. The new retail form temporarily absorbs much of the growth in the market until
a new equilibrium is reached in which the market share of the new form stabilizes. The thesis
contributes to further expanding research on the effects of big-box stores in small urban areas.
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Chapter 3- Research Design and Methodology
Introduction
This section will introduce my chosen research methodology and to describe the process
by which I intend on fulfilling my research goals and objectives. The following field area and
methodology will begin by outlining the impact of big box stores on urban growth as a research
problem. In doing so, I will provide evidence for why a case study is important in addressing the
issues stated in this project. As my case study takes place in Bowmanville Ontario, I will be
providing a descriptive profile of Bowmanville, including a summary of past and present urban
growth trends within the region.
Next, I will discuss the methods and data collection I will be employing, which will
include interviews and surveys. I will highlight the type of interviewing that will be undertaken,
the importance of interviews and the ethical consideration of my methods. In addition, I will
describe the types of questions I will use for my surveys. Also, how surveys will be useful in my
data collection. There will also be a rationale as to who will be chosen for my research methods
for this case study and why.
Finally, I will be describing my process of data analysis. With regards to my interviews
and surveys, I will be developing a coding structure to assist in data organization and analysis.
For my purposes, I intend to collect the data from my interviews via digital audio voice-
recording. To analyze all my data, I plan on using a qualitative approach to coding the data to
develop common themes, which relate to my research question and objectives. Employing this
approach will allow me to directly compare my findings with my objectives and evaluate
whether my objectives have been achieved. By comparing my results with my research
22
objectives, I will be able to draw clear conclusions to answer my research statement of how big-
box stores impact urban growth and downtown businesses in Bowmanville. The purpose of this
section is to explain how I will be proceeding with my research with regards to data collection
and analysis.
Qualitative Research
Given the exploratory nature of this research topic the use of qualitative research methods
will be appropriate to define and clarify the human environments, experiences, and
socioeconomic processes that I intend on studying. Qualitative research seeks to understand the
ways people experience the same events, places and processes differently as part of a fluid
reality; a reality constructed through multiple frames of reference and systems of meaning-
making (Hay, 2008). It draws on methods to reveal and interpret the complexities and
significance of how a person understands a certain issue. I am addressing what perceptions are
evident within Bowmanville with regards to big-box store development and how it affected the
urban landscape; therefore, qualitative research meets these objectives Above all, qualitative
research plays a major role in the combination of multiple methods used in a search of validity
and corroborative evidence. Qualitative research will be a fitting approach to my research as it
will assist in verifying, analyzing, interpreting and understanding human behaviours and
situations of all types (Hay, 2008). The qualitative methods that will be used in the research
include interviews and surveys.
Furthermore, qualitative methods are an important research tactic to explain difficult
cases such as retail development and planning. Those are complex issues which can easily be
done with a group of committed stakeholders and strong land use planning objectives. Achieving
23
cooperation and agreement from multiple interests and conflicting needs is challenging (Ministry
of Municipal Affairs and housing, 2009). The combination of factors require a closer
examination of an area to better understand and demonstrate this location’s urban growth and
retail landscape as well as associated challenges; thus, the reason for a case study for my
research approach. The knowledge recorded in the interviews and surveys may reveal those key
underlying social structures apparent in urban and economic development within the
municipality.
Profile of Bowmanville
I have chosen to employ a case study approach to explore a specific study area to
examine variability among different areas. By focusing on Bowmanville, I am able to examine
macro trends and how they play out in a given context which will allow me to examine concrete
solutions for that area.
In the case of my research project, I have chosen to examine Bowmanville. The town of
Bowmanville is the largest community in the Municipality of Clarington. It is one of the largest
municipalities in the GTA with a land size of 611 square kilometres. Other than Bowmanville,
other communities in Clarington include Courtice, Newcastle and Orono. Clarington was formed
in 1974 as the town of Newcastle then it changed its name to Clarington in 1994 as a result of the
merging of the former townships Clarke and Darlington. Clarington is situated in the Eastern
fringe of the Greater Toronto Area located 40 kilometres from the eastern border of Toronto
(Figure 1). It is accessible via Highway 401 and Highway 35/115. Thus, it is of close proximity
to major urban centres like Oshawa, Pickering and Toronto. The location makes Clarington an
attractive area for potential economic and urban development.
24
Figure 1: The Location of Clarington within the GTA Source: Clarington Board of Trade
Bowmanville’s current population as of 2011 according to Stats Canada is 36,700.
According to Statistics Canada’s 2001 Census data, Clarington’s population grew 15.2% from
1996 to 2001. That is an annual growth rate of just over 3% per year. The economy of
Bowmanville is dominated by service industry and utilities from Ontario Power Generation. It is
constantly changing over time because of growth and various social and economic factors. It has
a mix of rural landscapes, cultural heritage, recreational opportunities, natural resources and
natural environment. Bowmanville is characterized by a variety of landscapes, unique retail areas
and numerous recreational opportunities. It captures the spirit of a small town without sacrificing
the amenities of a large city. Late in the 20th century, the economic influence of the GTA is
continuing to affect land use and settlement patterns in Bowmanville. It faced challenges
regarding urban sprawl from the Greater Toronto Area. The increasing rate of residential growth
in the absence of balanced economic growth is placing greater burdens on local government to
provide services and to ensure the well-being and health of the community (Clarington, 2007). In
25
correlation with the rapid growth, Clarington has a young population. The median age of
Clarington’s population is 36.9 years as of 2006 (Hall, 2011). A growing young population is
connected to changing retail land uses.
Since the early 2000s, there has been a rapid expansion of large-scale retail development
in the West end of Bowmanville along Highway 2. Examples of major retail development
include Home Depot, Wal-Mart and a Canadian Tire was recently added in 2011. The recent
rapid growth in population has lead to the construction of big-box stores in the west end. The big
box development in the west end is the only major commercial development for Clarington
(Bouma, 2011). The west end, when was until recently a rural space, has transformed the
Bowmanville retail landscape. It has encouraged business and residential development to move
away from central and eastern Bowmanville. The retail development in the west end provides the
highest level of retail services and serves as a focal point for the residents of Clarington. Since
this time, the town of Bowmanville was ready for urbanization and to face the needs and
challenges associated with urban growth, local economic development and the changing retail
landscape. The reason that Bowmanville was chosen for this case study was that it is
experiencing rapid urban growth which lead to a drastic change in the retail landscape and local
economy.
The main reason that big-box development was occurring in Bowmanville was that there
was a demand for big-box stores. Since the early 1990s, Bowmanville was dominated by
suburban development and two-income families. Retail interests in Bowmanville are established
on the market, not the appearance. Zellers and other big-box stores need markets like
Bowmanville (Humber, 1997). There was a need for the expansion of strip-commercial
26
development and auto-oriented building forms. Major retail growth is phased in accordance with
population growth in Bowmanville and the surrounding area.
Growth Trends in Bowmanville
The town of Bowmanville experienced major population growth after 1986 as a result of
new housing developments mostly in the western section and northern sections. In 1991, the
population of the Municipality of Clarington was 51,160; in 2010, it was 86,495 (Durham
Region, 2011). That being said, population grew rapidly during this period, particularly between
the years 1991-1996. The current average yearly growth is 2.35% (Statistics Canada, 2007). It is
one of the fastest growing communities in Clarington alongside the towns of Courtice and
Newcastle which are also experiencing rapid population growth.
Bowmanville has experienced growth pressures characteristic of the fringe communities
of the Greater Toronto Area (Clarington, 2007). The characteristics include an unsustainable
consumption of land for housing developments and the construction of big-box stores. Also,
allowing for an increasing dependence on automobiles. Cheap land is a key driver for urban
sprawl in Bowmanville. Clarington has a large supply of greenfield lands and the municipality
has historically had some of the least expensive homes in the GTA. The combination of available
land and affordable homes has been Clarington’s competitive advantage for the last 20 years
(Salazar, 2011). Urban sprawl is a concern for Bowmanville because of a large amount of land
consumed for housing and commercial uses. Neither traditional city centre nor conventional
bedroom suburb, the in-between city reflects the ongoing rearrangement and relocation of urban
development. For some observers, it is the postmetropolis, or metropolis unbound, defined by
market-driven development and car dependency (Saunders, 2010). Bowmanville will continue to
grow in size which will result in a change of land use as well as introduce new retail landscapes.
27
The Municipality will continue to grow rapidly because of a large number of people attracted to
this area. By 2031, Clarington’s population is expected to grow to 140,300, nearly double the
population of 2006 (Clarington, 2007) (See figure 2). The impacts on rapid population growth in
Clarington include the need to develop new residential areas, create jobs in Bowmanville and
introduce new services such as department stores and health care centres. Municipalities must
also come to grips with a series of questions whose potential incomes can have serious
environmental, financial and social implications for the future health of the town (Salazar, 2011).
Clarington’s continual population growth will have a strain on land use if Clarington continues to
develop low-density housing and major retail developments.
Total Growth Compound
Annual
Growth Rate
Region of Durham
Forecast
1986
1991
1996
2001
2006
35,400
51,400
63,000
72,600
80,900
—
16,000
11,600
9,600
8,300
—
7.8%
4.1%
2.9%
2.2%
35,400
51,400
63,000
72,600
80,900
2011
2016
2021
2026
2031
89,700
100,800
114,100
127,600
140,300
8,700
11,100
13,300
13,500
12,900
2.1%
2.4%
2.5%
2.2%
1.9%
87,900
97,100
108,100
127,500
140,300
Figure 2: Clarington Population Growth Forecast. Source: Hemson Consulting
Bowmanville’s Economic Landscape
Bowmanville’s economy is mostly dominated by the service industry, particularly in
retail. The largest sectors of employment include utilities, retail, tourism, hospitality and
construction. Only half of the labour force residing in Clarington actually works in that area
(EDP, 2010). The total number of jobs in Clarington is forecasted to increase from 20,900 in
2006 to 38,400 in 2031, which is an increase of 17,500 jobs (EDP, 2010). The major companies
that form Bowmanville’s economic landscape is Ontario Power Greneration located south of the
28
401, Lakeridge Health Care and St. Mary’s Cement (Figure 5). Clarington’s great strength in the
energy sector is a direct result of it being the home to the Darlington Nuclear station for over 30
years. Clarington’s position in the energy Sector will continue to grow as Clarington becomes
home to Ontario Power Generation’s head offices (Hall, 2010). Growth is expected in the
construction sector due to the planned population and housing growth and also large planned
construction projects such as the Highway 407 Extension, industrial expansion and construction
of new retail developments (EDP, 2010).
Name Product or Service Sector No. of Employees
Ontario Power
Generation
Electricity Energy 2,500
Municipality of
Clarington
Local Government Government 700
Lakeridge Health
Corporation,
Bowmanville
Healthcare Health 367
St. Marys Cement Aggregates/Cemen Manufacturer 150
Manhiem Oshawa,
Courtice
Wholesale vehicle
auction
Automotive 120
Figure 3: A List of Clarington’s Largest employers Source: Clarington Board of Trade
Clarington is part of the GTA regional labour market, and as such has high levels of
labour inflows and outflows. Most people living in Clarington work outside of the municipality.
In addition to the aforementioned industries, there will be continued growth in population related
services such as retail and commercial uses as the population increases (EDP, 2010). It is likely
that most of the retail employment growth will be small businesses which are consistent with
trends in the broader economy. In 2006, there were 2,060 in the retail sector which accounted for
7.3% of jobs in the Durham Region (EDP, 2010). The economic landscape allows for the
encouragement of new retail and commercial developments while promoting the downtown area
29
as an attractive location for retail, office and tourism purposes (Clarington, 2007). Factors that
influence economic growth in Bowmanville include population growth and land availability for
employment uses. Clarington’s local economy will continue to grow because of major
infrastructure projects that have been proposed for this area.
Sustainable Growth
Bowmanville is moving ahead with sustainable growth policies in response to managing
dispersed growth. The Growth Plan is a policy as required by the Places to Grow Act in 2005.
The plan guides decisions on a wide range of issues – land use planning, urban form, housing,
transportation and infrastructure planning and natural heritage and resource protection (Durham,
2007). Increasingly there is recognition that traditional urban patterns have a host of negative
unintended impacts on our economy, society and environment (Salazar, 2011). This trend is
consistent with other jurisdictions across North America where urban centres consume more and
more space per person (Ministry of Infrastructure, 2007). Most of the housing densities in
Bowmanville and the surrounding area is low-density housing. The number of houses
constructed varies per year and it is expected to increase (Figure 3). Clarington’s Growth Plan
targets will assist the Municipality to understand the implications of shifting from lower density
to medium and higher density housing and employment patterns (Salazar, 2011). The plan
tackles some of the challenges facing growth and the municipality examines how, when and
where growth should occur in certain communities. A key reason for sustainable growth is to
understand the effects of the policy-based challenges to growth patterns that are envisioned by
the Growth Plan. It allows for Bowmanville and area to meet the needs for the growing
population in the future. Needs include developing a plan to achieve gross density target of 200
residents and jobs, combined, per hectare in the year 2031 (Durham, 2007). Another goal is to
30
achieve higher densities of development within the municipality. The purpose of the sustainable
growth policies is to control rapid urban growth which is a result of urban sprawl. Another
reason is to plan and manage growth to support a strong and competitive economy.
Figure 4: New Residential Units Approved for Construction Source: Clarington 2010 Growth
Trends Review
Another solution to sustainable growth is intensification. It is higher density
developments in an urban area (Salazar, 2011). This method encourages mixed-use
developments, Brownfields and medium-to high density developments. It is an important policy
objective because it is a response to unsustainable growth in most Canadian cities. However, the
growth and expansion of North American cities was underpinned by at least three basic
conditions: 1) relatively inexpensive and abundant raw land at the periphery; 2) cheap fossil
fuels; and, 3) fast and efficient automobile travel (Salazar, 2011). Intensification strategies will
encourage it generally through built-up areas, identify intensification areas, plan for a mix of
housing and encourage secondary suites throughout the built-up area.
31
Planning Retail
Recent developments in the north and western sections of Bowmanville have allowed for
more retail to be developed in these areas. According to the commercial policy review, retail
space per capita increases as the population increases. In 2003, the existing space per capita in
Clarington is about nine square feet per capita (Clarington, 2005). The additional space per
capita increased with the arrival of big-box stores in the late 2000s. Planning documents show
that the amount of space needed for retail increases with population growth.
The Changing Face of Retail
Plans for new retail development in the west end began as early as 1993. A new Zellers
and strip mall development were planned at the time but were constructed in 1998. Residents
were concerned about the appearance and land usage of new retail developments. The one issue,
in the view of residents is size and aesthetics. Residents were concerned with the appearance of
the developments. There were concerns regarding size and the amount of land used for parking
spaces. The maximum gross leasable floor space for retail uses in West Bowmanville is 100,000
square metres (Clarington, 2007). It is the maximum floor space allowed on a development
parcel of land. New developments should match the character and identity of the historic
downtown of Bowmanville regarding appearance. In attempting to modernize the impact of new
retail development along Bowmanville’s fringe, the Municipality of Clarington had supported
plans to provide at least some form of visual connection and identity between proposed
development on Highway 2 and that of the older businesses in the core of Bowmanville
(Humber, 1997). Residents were concerned that they would be ugly developments that would get
uglier as time moves on. That being said, there were concerns regarding aesthetic appearances on
new strip mall development. Like the downtown, new retail developments not only have
32
automobile access, but also have pedestrian access as well as landscaping, lighting and other
streetscape amenities. There were also concerns about the disappearance of small businesses in
the downtown core as well as preserving the character and vitality of the downtown. Many of the
merchants are trying to anticipate the changes they will have to make to maintain their portion of
the market share and viability of their enterprise (Clarington, 2011). There were ongoing
criticisms and controversies regarding more recent big-box developments in the last five years.
Wal-Mart was proposed in 2006 but it was not constructed until 2010 due to ongoing lawsuits
concerning the size and appearance of the store (Clarington, 2011). When it was constructed, it
was larger than it was initially planned. Home Depot was constructed in 2008 but it was
proposed at the same time as Wal-Mart. In 2007, a proposed large-scale Rona hardware store
was constructed at Highway 57 just north of the 401. However, due to financial problems, the
Rona never opened and the building still stays vacant today. This year, a large Canadian Tire was
constructed making it the largest one in Canada. The resulting landscape reflects a fragmented or
recomposed mix of residential, commercial and industrial spaces that are oriented towards low-
density economic growth (Saunders, 2010). The controversies regarding big-box developments
were a result of challenging planning policies surrounding commercial development. These
included zoning laws, land use compatibility, signage and building setbacks from the road.
Another criticism of big-box stores is the location. All major retail developments are
centered along major roads and intersections. The major big-box development in West
Bowmanville is located in the west end along Highway 2 just west of Highway 57 (see figure 4).
The area was undeveloped land now used for greenfields development. The majority of the
downtown lands were built out and occupied (Salazar, 2011). This is because there is a limited
amount of land for development in the central and east areas of Bowmanville. Retail
33
developments are centered away from residential developments because of concerns regarding
aesthetics and noise from trucks and other vehicles. The main reason that big-box stores are near
major highways in Bowmanville is for quick and easy access to these locations.
Figure 5: A Map of the developments along highway 2 in West Bowmanville Source: Salazar,
C. (2011). Intensification Discussion Paper.
Despite the number of big-box developments, Bowmanville is lacking in other retail
developments such as grocery stores and restaurants. The town only has three grocery stores
which are not are enough for the rising population. That being said, not all retail developments
are growing in accordance with population growth. The growth of big-box stores outpaced the
basic retail needs like grocery stores (Humber, 1997). Along with the arrival of big-box stores in
the west end came chain restaurants which impacted downtown and independently-owned
restaurants in the area. Therefore, the arrival of modern retail developments like strip malls have
34
not only altered Bowmanville’s retail landscape but also affected various independently owned
businesses.
Historic Downtown Bowmanville and Its Impact on Big-Box Stores
When big-box stores were first planned in Bowmanville, there was a concern about
preserving the integrity of the downtown. Residents were concerned about the disappearance of
small businesses as a result of competition from major retail outlets. New commercial
development within the Bowmanville West Town Centre has the long term potential of
undermining the shopping function of the downtown area (Salazar, 2011). The downtown has a
number of competing land uses such as small shops, financial institutions and restaurants. The
downtown is vital to Bowmanville’s local economy and strengthening community development.
According to the local Board of Trade, the support of locally owned independent business
influences our community by strengthening our economy and enhancing the character and appeal
of our towns and villages (2010). Small businesses tend to fund city services through tax and
invest in neighbourhood development and also helps protect the character and prosperity of its
growing economy. The Historic Downtown of Bowmanville needs residential infilling to support
its small shops and businesses, which will come under continued pressure as the nearby Town
Centre West area builds out (Salazar, 2011). According to the Board of Trade, downtown
improvements are done through the BIA as well as the Clarington Board of Trade. They help
promote, enhance and beautify the downtown to make it attractive for retail use. The downtown
remains the focal point of Bowmanville for retail, tourism and institutional uses.
Big-box stores are tied to Bowmanville’s economic growth because they create retail
sector jobs as well employment in construction and distribution. These spin-off sectors are
growing due to investments in the retail industry. While these sectors are important parts of local
35
economies, they are not considered to be as significant from an economic development
perspective as sectors which are exported based and bring new ‘outside’ money into the
economy (such as would associated with manufacturing, energy, and tourism industries) (EDP,
2010). It will be important, however, that adequate lands are available in proximity to residential
areas to allow for the growth of these population serving sectors. The retail sector is also a
relatively large employment sector but there was little change in this sector’s employment level
between 2001 and 2006 (EDP, 2010). This could be attributed to a number of factors such as
leakage of retail spending due to a preference of the population to shop in larger centres for
bigger purchases, or gaps in the quality or quantity of retail uses in Bowmanville. The problem
with big-box stores is that very little profits benefit local economic development (Hall, 2010).
Big-box stores according to EDP Consulting have little public benefits and costs and small
businesses create more jobs locally than chains do. Employment in retail is expected to increase
along with urban growth, particularly with new developments such as Wal-Mart and Canadian
Tire. (Clarington, 2011).
If Bowmanville continues to grow, there would be changes in the local economy. We
would somehow have to transform the local economy to be more oriented towards office, make
multi-storey manufacturing and distribution feasible and competitive and actually refuse to
accommodate certain types of economic activity if they were not dense enough (Hemson, 2005).
Lack of serviced land is a key issue which will impact the timing, amount, level and type of
economic development which will occur in the area (EDP, 2010). Planning policies are directly
tied to urban and economic growth. Places to Grow policies direct municipalities to ensure the
availability of sufficient land to accommodate forecasted employment growth and a variety of
employment uses (EDP, 2010). It ensures that necessary infrastructure is provided to support
36
current employment needs and providing an appropriate mix of employment uses including
commercial and institutional uses to meet population needs.
ResearchDesignand Methods
This section will outline the methods of data collection that will be used to gather the
empirical data for this research project. The two sources of data are interviews with the
informants in Bowmanville and the use of surveys to gather information from downtown
businesses. A description of the collection methods will be described in the later sections.
Method #1- Semi-Structured Interviews
Within Bowmanville, the methods used to obtain primary data for the analysis of big-box
development are interviews. Interviews offer the most effective method for direct access to
valuable stakeholders on any particular issue (Hay, 2008). My research is dependent on different
views from municipal government and economic representatives. Therefore, interviews not only
provided the vehicle to get each stakeholder’s view but also aids in the identification of
connections between different aspects of urban growth and local economic development. In
addition, interviews provide insights into the differing opinions on different issues and in some
cases, revealed consensus among respondents (Hay, 2005). In comparison to other methods,
interviews can obtain large amounts of contextual data. Moreover, engaging in face-to-face
encounters with informants will allow me to obtain information on non-verbal behaviour which
helped solidify the respondent’s opinions and views toward certain issues (Hay, 2008). Meeting
interview respondents in person also provide clarification on the aspects of urban growth and
local economy that I would not acquire form the analysis of literature and other documents.
Finally, interviews provide a first-hand perspective on the topic. They help by filling a gap in
37
knowledge that other methods like observation or the use of census data may not have been able
to bridge effectively (Hay, 2008). The types to questions used in my interviews include open and
closed-answer questions.
I have chosen to use semi-structured interviews for my research. Interviews blend both
structure and organization, thus providing with enough freedom to adapt and change questions as
needed during interviews (Hay, 2008). Semi-structured interviews are interviews with
predetermined order, but which nonetheless has flexibility with regard to the position and timing
of the questions (Hay, 2008). Each interview will take about one hour to complete. The
stakeholders that will be interviewed for this thesis include the municipal planning department,
head of economic development, local councillors and the members of the downtown business
association (See Table 1). The semi-structured interviews will be conducted with an approximate
total of eight to ten individuals. The participants that will be used for the interviews have
knowledge related to economic and urban issues within Bowmanville and surrounding area. The
individuals are selected as their knowledge of the municipality is believed to be valuable to my
research. The informants are chosen purposefully on the basis of issues and themes that emerge
from a review of literature.
Table 1: Codes Used for Identifying Interview Subjects
Date of Interview Department Title Department or Agency Code Used in Interview
Analysis and Results
January 5, 2012 General Manager Bowmanville Business
Improvement Association
BIA
January 5, 2012 Local Councillor (Ward 2) Municipality of Clarington LC
January 6, 2012 Head of Planning
Department
Municipal Planning
Department
HPD
January 6, 2012 Commercial Development Municipal Planning CDO
38
Officer Department
January 9, 2012 Head of the Board of
Trade
Clarington Board of Trade CBOT
January 23, 2012 Regional Councillor
(Wards 1 & 2)
Municipality of Clarington RC
The interview guides that I will use for my interviews are a prompter for myself, but are
useful for making notes throughout the process. The purpose of these guides is to separate the
type of questions asked to each informant. They also demonstrate the logical flow and path for
the questions. This involves approximately six or more questions per section or theme. The
questions will be formed from existing literature about big-box stores and Bowmanville that has
been reviewed for this topic (See Appendix B). Under central questions, I will use detailed
questions or prompts. Pre-determined questions will be used as a potential fall-back in case I will
be unable to articulate a certain question on the spot. Each guide will be designed with each
informant in mind, as I personalize each question with regards to their job title and roles within
urban planning, economic development or municipal government. The use of interview guides
allows for flexibility in interviews. As the interviewer, I will allow the conversation to follow a
natural direction, but I am able to redirect the discussion to those issues that were left out. Also,
questions could be made up on the spot and I can draw out themes already mentioned to carry
out natural discussion.
Interviews will be recorded via digital recording. Both audio recording and note-taking
have associated advantages and disadvantages (Hay, 2008) therefore a useful strategy of record
keeping is to combine note taking and audio recording. Audio recorders also assist in compiling
the fullest recording, while the primary note-taking allows the researcher to note individual
things and mark key messages in the interview. Voice recording technology is used for
39
interacting with the participant. In addition, note-taking is useful for detecting body language or
non-verbal actions the respondent made to supplement the speech. Once the data is recorded, it
will be transcribed and recorded onto my computer. Transcripts are the best possible record of
the interview and they include descriptions of gestures and tone as well as speech. Transcription
allows the user to engage with the data again and the re-immersion in data provided for a
preliminary form of analysis (Hay, 2008).
Method #2- Surveys
The purpose of surveys in my research is to discover patterns in attitudes and behaviours
regarding my topic of big box stores and downtowns. With surveys, every respondent is asked
the same questions, the same way and in the same sequence. They can be used to collect
information to clarify respondents or to learn about their behaviour and to understand their
attitudes about a certain issue. The benefits of surveys include that they provide insights into
relevant social trends and processes. They are also cost-effective given that they are one of the
more practical research tools. Lastly, they are extremely flexible. They can be combined very
effectively with complementary, more intensive forms of qualitative research to provide more in-
depth on social processes (Hay, 2008). The surveys will be distributed to business owners,
particularly those affected by major retail development. Types of businesses include clothing
stores, shoe stores and opticians (Table 2).
Store Category Codes Used in Surveys
4 clothing stores CS
Sporting Goods SGS
40
Furniture Store FS
2 Home Improvement Stores HIS
3 Specialty Stores SS
Table 2: List of Survey participants and codes
Each survey is unique; there are common principles for good design. Producing a well-
designed survey for qualitative research involves a great deal of thought and preparation,
effective organizational strategies and critical review and reflection (Hay, 2008). The content of
surveys must relate to the broader research question as well as to one’s critical examination and
understanding of relevant processes, concepts and relationships. The clarity of research
objectives is important as it will help me to select a target population and relevant key questions.
There are four distinct types of question content. The four types are attributes which aim to
establish respondent’s characteristics, behaviour which discover what people do, attitudes and
beliefs about what people believe to be true or false (Hay, 2008). The types of questions that I
will use in designing my survey include yes/no answers, scaling, rating, category and open
answer questions (See Appendix C). When designing surveys, it is important for me to take into
account my research objectives and a critical review of literature about big-box stores.
Mode of Distribution
Consideration for the mode of distribution should be one of the earliest stages in survey
design. It has significant implications for design, layout, question type and sample selection
(Hay, 2008). The distribution mode that I choose to do is face-to-face. The advantages of this
mode include having the opportunity to clarify questions and probe vague responses. Another
41
benefit is that people are more likely to offer long responses that have more depth. The best
choice of distribution best reflects the research context and target population.
Sampling
Sampling is the means of selecting participants for inclusion in a survey (Hay, 2008). It
helps determine my target population for study. Since surveys are used to generate claims about
the behaviour or opinions about a group of people, samples are selected carefully to be
representative of the population. In such cases, a list of the population in question, the sampling
frame is required so that a sample can be constructed (Hay, 2008); for example, a list of all the
businesses in downtown Bowmanville. The type of sampling that will be used for my surveys is
purposive sampling. It is commonly used wherein sample selection for survey respondents is
made according to some common characteristic. The businesses in downtown Bowmanville will
be classified through types such as retail and services. The type of businesses that I want to
survey is retail-type businesses.
Ethics Approval
The conditions on collection procedure include having to obtain an ethics approval before
undertaking any qualitative methods like interviews and surveys. It requires the consideration of
ethical issues or circumstances that may appear in the research process. It is useful to consider
such formal guidelines as a first step in thinking through the social context of one’s research
(Hay, 2008). When doing research that involves people, it is required to do an ethics review.
Such committees focus on the researcher’s responsibilities to research subjects and to formulate
guidelines about what the researchers should not do in the process. They also offer a useful
alternative perspective on one’s research and can point out problems that may have been missed
42
in the development stage of one’s research (Hay, 2008). The purpose of ethics is to prevent any
type of harm, whether it would be social or physical, from occurring in one’s research (Hay,
2008). This means thinking through the social context of my research, to ensure the research is
conducted in an ethical manner and that consideration for the activities performed during
research should be respectful to the participants involved in my research.
Before beginning my qualitative research, I will submit my research project and methods
to the Trent University’s Department of Geography’s Ethics Committee. This process is
important as to being careful to avoid any questions or scenarios which may create problematic
circumstances for my research participants. The process involves filling out a Human Research
consent form to give to my research subjects. This assists in minimizing any risk or myself or the
participants. The approval of the ethics review will allow me to move ahead with my research.
Data Analysis
A sixty-minute interview will require at least four hours of transcription (Hay, 2008). I
will use an extended period of transcription in my research schedule. After I transcript the
interviews, I will analyze the data to retrieve results from the interviews. Manifest and latent
coding will be used for coding the interviews and surveys. Coding will assist me in the
construction of themes within my research, while identifying relations between variables or
methods. In addition, coding will aid in the discovery of patterns among data and between
methods (Hay, 2008).
Manifest coding will be used to draw out most obvious terms such as growth, planning
and businesses, but I will also determine latent messages and themes from the data. The manifest
terms will stem from my literature. The purpose of latent coding is to determine the underlying
43
meanings of what was said (Hay, 2008). It determines meanings found in the answers. Coding
will be the primary method of data analysis and data sorting. It will also make the data accessible
for later retrieval.
Surveys will be analyzed through four quantitative elements: evaluating the size effects
between variables and by doing so taking account of other variables, testing as part of
confirmatory data analysis whether the observed effects could have occurred by chance. Also,
taking account quantitatively of the complex design of the survey and dealing with non-
responsive as well as missing data. Closed questions are easy to code numerically because they
provide counts of categorical data. In qualitative answers, the important data often lie in the
detailed explanations and the precise wording of respondent’s answers (Hay, 2008). It is best to
avoid classifying responses into simple descriptive categories. It assumes that variable and
multiple understandings co-exist in a given social context.
Timeline of Research
My ethics approval was handed to the Geography Department in December and was
accepted a week later. My interviews began in early January and concluded January 23rd. The
surveys were distributed in early January and were returned via mail in early February. After I
transcribed my interviews onto my computer, I began coding both interviews and surveys for my
results. Both interviews and surveys assisted with expanding the research on big-box stores in
small urban areas.
44
Chapter 4- Results
The purpose of this section is to describe the results from my semi-structured interviews
and surveys. These findings came from a mixed-methods approach which included interviews,
surveys and a review of the Municipality of Clarington Commercial Planning Policy. First, I
have recorded the information given within six interviews over the course of the past six months.
Secondly, I have compiled the results from the surveys that were distributed to downtown
businesses. Third, commercial policy was evaluated for quantitative sales data relevant to big-
box stores and economic impacts. Broken down further, the interviews and surveys represent the
views of five municipal employees, one Business Association representative and eleven business
owners. Overall, my results have stated that big-box stores have a slight impact on the town of
Bowmanville regarding urban growth and the local economy.
This section will first cover the perspectives of municipal planners, councillors and
administrators will be represented through semi-structured interviews. In addition, it will provide
a synthesis of how small businesses are impacted by big-box stores through surveys. The
intention of this chapter is to provide the general results which stem from my two chosen
methods of qualitative study. The results from my interviews and surveys accomplished three out
of the four research objectives. The first objective was completed through critically examining
scholarly journals relating to big-box stores. The first subsection examines the reasons why big-
box stores were planned for the outer edge of Bowmanville. This was accomplished through
interviews with the head of the planning department as well as with the head of commercial
development, thereby fulfilling the second objective. The next subsection will cover the various
challenges associated with big-box development and how these challenges have affected
planning policy and economic development in Bowmanville. This was done through interviews
45
with the local and regional councillors and with the head of the Clarington Board of Trade thus
accomplishing objective #3 of analyzing challenges connected to retail development. The final
subsection determines how big-box stores impacted businesses through the perspectives of the
downtown business owners as well as the general manager of the Bowmanville Business
Improvement Association. This fulfills objective number four.
Why Big-Box Stores Were Planned for West Bowmanville
My third objective was to determine why big-box stores were planned for the outer edge
of Bowmanville. The big-box stores were planned in Bowmanville west of Highway 57 (See
Appendix D). This objective was first fulfilled through examining planning documents in the
early phases of research. Interviews with members of the planning department gave the further
insight to this objective. Big-box stores were planned in Bowmanville not only because sufficient
land that was available, but also because of rapid population growth in that area during the
1990s. The development occurred in two phases; the first phase occurred in 1991 and the second
phase occurred in 2005. According to the head of the planning department, the reason that this
development occurred was because of the need for more retail space in Bowmanville. Other
reasons included rapid population growth and location for development.
Major retail development occurred as part of the secondary plan to bring forward an
alternative shopping experience. One-stop shopping become prevalent as development changed
to larger department stores (RC,4) . It was a move away from traditional retail methods. Various
plans and studies were done to determine why retail development should occur in Bowmanville.
Commercial development studies were done to determine the amount of commercial space that is
available for development (HPD, 5). Other studies included the Official plan review which
46
determines where development can locate and its design goals. The plan review also shows
growth projections to 2031 in Clarington. The commercial policy review determines how much
impact commercial space has on a certain area without affecting the community (HPD, 6). It
looks up where commercial lands can be located. It also measures retail demand for certain types
of retail such as department stores, home improvement and grocery stores through measuring
sales data. They also did an in-home survey with Clarington to measure retail demand.
Collaboration on these retail projects is done with the BIA, developers and lawyers. These
studies have shown that West Bowmanville is ideal for retail development because of the amount
of commercial space that is available for development. This area has some impact on the
community without affecting Clarington in terms of retail competition.
In the late 1970s, the east end of Bowmanville was already developed with the first major
retail development, the Bowmanville Mall. During the 1990s, more retail was planned in the
West end on Highway 2 between Highway 57 and Green Road. Big-box stores were planned in
Bowmanville because of the need for more retail space. Retail development was phased
according to anticipated demand without the regard for the type of store. The primary reason for
phasing the development of commercial floor space in Clarington is to provide for the ongoing
health of the historic downtowns and to protect their planned function (Clarington, 2005). This
area was chosen because it was the only available land suitable enough for retail development. It
was untouched by other developments such as residential. The area west of Highway 57 was the
only area that was designated for retail development (CDO, 9). Once the big-box stores were
planned in that area, more retail space was added. The Canadian Tire was added in 1992
followed by Zellers. By the late 2000s, Home Depot and Wal-Mart were built on the north side
of Highway 2. In the future, retail developments can only expand so far because there is a limited
47
amount of land that can service them. In Clarington, the retail footprint is limited so only a
certain amount of retail can be developed (HPD, 10). The West end was designated for retail
space because it was large enough to support several big-box developments as compared to other
areas in Bowmanville such as the east end (HPD, 13).
Rapid population growth in Bowmanville was a reason for big-box stores to be
developed. A store may decide to locate in a town based on population growth. The developers
look at what stores exist and also of the income of people. Then they multiply it by the
population, this is how they measure retail demand by population (HPD, 5). Population is used to
measure retail demand because certain retail services such as grocery stores require a certain
consumer base to support that business. For example, Zellers was planned during the 1990s
because the population was forecast to grow significantly in the future. Retail development is
driven by consumers because they pick up price-pointed needs. It also eliminates competition
between two businesses in the same area. Clarington was seen as the ideal market for big-box
stores because of increasing urban growth (CBOT, 4). Most of the population growth came from
middle-income families who use department stores to buy most of their goods. Big-box stores
arrived in Bowmanville because there was sufficient consumer base to create a market for retail.
Thus, rapid population growth leads to increasing demand for retail services.
Demographics play a role in major retail development. Preference of retail is a factor in
big-box development. Young people with families tend to prefer big-box stores because of the
notion of one-stop shopping and cheaper prices. They are also open 24/7 which makes it more
convenient for those who work out of town. Older residents are more likely to support the
downtown because they like the comfort of small businesses and meeting people. New residents
also like the comfort of having big-box stores because they are predictable and are located in
48
most towns (CDO, 8). Residents wanted big-box stores in Bowmanville they wanted to be closer
to amenities and needs are varied for families. Lifestyle preference is important for retail
development because young people want convenience and elderly want the local feel of
downtowns.
Having the big-box stores in the West end creates a balance in retail development for
Bowmanville. It was becoming decentralized thus it is a good area for development. There is a
balance in retail in the east and west ends of Bowmanville to meet the needs of these areas. The
west and east end retail developments act as anchors for Bowmanville’s retail base and the
downtown is the central hub (HPD, 4). The downtown is the main area for service businesses and
speciality shops whereas the east and west end retail developments are anchors for general retail.
The downtown is located in an area which is known as a ‘strange street’. It is an area between
two anchors (BIA, 10). The anchors consist of Bowmanville Mall in the east end and the
Clarington Plaza and Wal-Mart in the west end. Having a balance in retail types in different
areas in Bowmanville reduces competition between existing stores. While Bowmanville West
will function as a developing centre able to accommodate larger stores within a pedestrian-
oriented grid street system, Bowmanville East will continue to function quite distinctively as the
historic Bowmanville Downtown and East Business District focusing on smaller-scale retail,
personal service and office uses (Clarington, 2005). The West end was developed because it
creates a balance in retail services to support the population of Bowmanville and surrounding
areas.
Location is important for big-box stores because of easy access. The retail developments
are located along Highway 2 for easy access. The West end acts as a gateway to the downtown
and east end retail areas. Highway 2 maintains its function of a main street through the town
49
centres and provides an efficient means of access across Bowmanville (HPD, 9). The existing
Centres as designated in the Official Plan are and will be central to the growing population. In
addition they form the ‘nodes’ along Clarington’s main street, a key element of the long term
urban structure objectives (CDO, 5). Location plays a role in retail development because the
farther away developments are from a major roadway, the more impact it has on other
businesses. If businesses were moved to other areas in Bowmanville, it would affect retail along
Highway 2 (LC, 5). For example, a new Rona was developed in the south end of Bowmanville
and people were concerned that it could affect not only the downtown but also other big-box
stores such as the Home Depot. It also makes it accessible for other residents in Clarington The
retail on Highway 2 allows for residents from other areas to use these stores. There are five
highway commercial areas as stated in the Commercial Policy Review. They are intended to
accommodate uses such as home improvement stores but not become major concentrations of
retail space or accommodate uses which are important to the development of key urban centres
(such as department or food stores) (2005). Location is important for big-box stores because they
are located along main streets for access into other town centres.
In the future, retail development will happen in other areas because of growing consumer
base. The amount of land that is designated for retail in Clarington is becoming scarce. Mixed-
use development will become the future of retail development (CDO, 11). There is a need to
return to mixed-used because land is protected. There will also be more intensification in areas
between downtown and the West End to lure more consumers into the downtown. There is an
increasing trend to intensify more buildings and to introduce services such as medical use (HPD,
10). Intensification and mixed-use will be part of future retail developments in Bowmanville
because there is a limited amount of land to sustain future developments. Positive municipal
50
policies, strategies and initiatives should be used to foster the health of the downtowns and
should specifically provide for appropriate redevelopment and intensification (Clarington, 2005).
The Bowmanville East and West town centres provide opportunities for infill and intensification
in these areas. Growth has to happen within the boundaries and there is no expansion of these
boundaries. Urban areas can grow in many directions and they cannot expand all at once. The
municipality will continue to provide incentives for redevelopment and intensification in all
Bowmanville retail centres.
Challenges Associated with Retail Development
My third research objective was to determine challenges associated with big-box
development. It involved interviews with various stakeholders such as municipal councillors and
the Board of Trade. The participants in these interviews stated that these challenges can have
profound impacts on Bowmanville’s retail landscape. There were not only economic and social
challenges, but also challenges regarding planning policies. Challenges and impacts regarding
big-box development included keeping shopping dollars in the local economy and having a
sufficient population to support these big-box stores.
Population/Community
One of the challenges associated with big-box stores is that Bowmanville had to have a
sufficient population base to support these types of stores. According to the manager of the
Bowmanville BIA, when Zellers was proposed in Bowmanville during the early 1990s, the BIA
went to the Ontario Municipal Board on two occasions to debate claim that there has to be a
sufficient population to support Zellers. However, they lost with the OMB and the Zellers was
developed five years later. During the mid-1980s and early 1990s, there was rapid population
51
growth in Clarington and this spurred the demand for big-box stores. Most of the population
growth resulted from younger families. Their needs are varied from other demographics such as
seniors because they want to be closer to amenities like department stores (RC, 7). However, the
downtown businesses were concerned that Bowmanville could not support big-box stores due to
the population (LC, 3). When Bowmanville has a sufficient population, then more stores can be
built. The population of Clarington is at an appropriate level where more retail can be developed
because residents want to be closer to their needs according to the regional councillors.
Community Identity
Another challenge is the loss of community identity for Bowmanville. Big-box stores
tend to erode the identity of small towns because they have no community feel on that town
(BIA, 5). As one interviewee noted the downtown contributes to Bowmanville’s identity because
most residents tend to associate downtown to where they live. When most people think of
Bowmanville, they think of the downtown and not the big-box stores themselves (CDO, 9). The
downtown acts as the ‘living room’ of the community (CDO, 9) because people use it not only to
buy things, but to socialize as well. People that work in the downtown also visit some of the
shops and restaurants and to socialize with people they know. Schools and banks support the
downtown because they use the stores to buy things. For example, high school students go to
downtown for lunch rather than go over to Wal-Mart or the Bowmanville Mall. Downtowns tend
to decay because of a loss of business and this tends to result in a loss of community identity.
The manager of the BIA explained and noted that the decay of downtowns can result in an
increase in suicide rates. The commercial developments should be focused, not dispersed which,
among other things provides better opportunities for transit and an opportunity to create a strong
sense of place and identity (CDO, 4).Loss of community identity is a concern for Bowmanville
52
because big-box stores remove that sense of community. As big-box stores appear, there is a loss
of importance in the downtown core.
Loss of Revenue
Loss of local shopping dollars is a challenge for major retail developments. Before big-
box stores were built in Bowmanville, people were buying goods outside of the municipality. As
a result, money was leaving the local economy. Big-box stores help keep money in the local
economy so people do not shop elsewhere. Big-box stores help entail job creation which puts
spending back in Clarington’s local economy (CBOT, 25). The head of the Planning department
explained that 62 million dollars were being lost from the local economy as a result of shoppers
going elsewhere for retail. Residents were not spending money in their community.
The Commercial policy review shows the amount of shopping dollars that is being
filtered into Clarington’s economy. Sales data for department stores and downtown stores are
shown between the years 2007-2016 (Figure 1). Sales for department stores have increased
dramatically thus having more shopping dollars returning to Clarington’s economy. According to
the Commercial Policy review, Clarington was only capturing 34% of expenditures; it was very
low for certain retail sectors such as home improvement. In 2004, people spent 67% of their
expenditures in the community, only 17% of spending was in department stores (HPD, 6). This is
based on the amount of sales we could recapture for 152,000 sq. Ft. When Wal-Mart and Home
Depot were constructed in the late 2000s, this helped increase the amount of shopping dollars
that was being brought into Clarington. In 2008, the new Wal-Mart was expected to make 58.2
million dollars of total sales and the Home Depot was estimated to have sales of 19.4 million
dollars (Clarington, 2005). Big-box stores help benefit retail sales in Clarington. Building new
retail developments will prevent residents from buying merchandise elsewhere. The Commercial
53
Policy Review states that an increase in square footage leads to more sales per square foot, thus
increasing the amount of spending dollars back into Clarington’s economy. At the lower end of
the average sales performance levels calculated which are considered reasonable for the
Clarington market, some 633,800 to 703,000 square feet of additional retail space would be
warranted in Clarington by 2007 (at sales levels of $325 and $290 respectively). By 2010, at the
same sales performance levels, the additional space required would be in the 790,000 to 876,000
square foot range. By 2021, the additional space would double from that warranted in 2010
(Clarington, 2005). Once big-box stores are built; then they will help increase the amount of
retail sales being put into the economy. There is an opportunity to recapture a portion of these
expenditures with new retail facilities in Clarington.
Figure 6- Sales Data for new retail developments in Clarington. Source : Clarington (2005)
Commercial Policy Review
2003 Dollars 2007 2008 2013
2016
Total Clarington - Proposed/PotentialDesignated Non-Department Store DSTM Space (Net) 407,100 407,100
407,100 407,100
TOTAL SALES - Proposed/Designated Non-Department Store DSTM Space ($ Millions) $108.8 $112.9 $123.0
$133.0
Average Sales Per Square Feet - Proposed $265 $275 $300 $325
Less: TOTAL Wholesale Trade (if WMC) $0.0 $0.0 $0.0 $0.0
Total Estimated Inflow Sales- $35.8 $37.1 $40.2 $43.5
Average Inflow 33% 33% 33% 33%
A. TOTAL REQUIRED FROM CLARINGTON RESIDENTS $73.0 $75.8 $82.8 $89.5
B. TOTAL NON-DEPARTMENT STORE RESIDUAL POTENTIAL AVAILABLE $58.8 $58.7 $84.3 $100.8
TOTAL SALES TRANSFERS REQUIRED (A. LESS B.) $14.2 $17.1 none none
NET ADDITIONAL RESIDUAL POTENTIAL FOR EXISTING/OTHER FUTURE PROPOSED SPACE (4
none none $1.5 $11.3
EXISTING CLARINGTON NON-DEPARTMENT STORE DSTM SPACE:
Sales from Clarington Residents ($ Millions) (including add'l residual) $71.4 $57.2 $54.3 $72.9 $82.7
$0.0 $0.0 $0.0 $0.0 $0.0
$0.0 $1.9 $2.0 $2.3 $2.2
Net Sales from Clarington Residents ($Millions) $71.4 $55.3 $52.3 $70.6 $80.5
Plus: Estimated Inflow 32.3% (2 $34.1 $26.4 $25.0 $33.7 $38.4
TOTAL SALES $105.5 $81.7 $77.3 $104.3 $118.9
Total Sq Ft GLA 460,900 460,900 460,900 460,900 460,900
Existing Sales Per Square Feet GLA (3 $230 $175 $170 $225 $260
54
Change in Total Sales From Existing Level -22.5% -26.8% -1.1% 12.7%
Planning and Design
Planning policies were a challenge for retail development because developers have to
conform to the municipal and provincial planning legislature and the places to grow plan (CDO,
12). They also have to conform to the Oak Ridges Moraine and Greenbelt plans because 81% of
the land in Clarington is protected (CDO, 13). In addition, commercial planning policies state
that retail development should integrate land use, urban design and transportation objectives as
well as providing less restrictive commercial policies by creating a simplified hierarchy (HPD,
4). The policies should focus the development on the urban centre. Consistent with the current
Official Plan policy, other new power centres, expansions or significant commercial areas should
not be created over the planning period and should only be considered through a comprehensive
planning process (CDO, 4). The planning policies establish criteria related to conformity of the
development with urban design policies and securement of the necessary transportation
infrastructure such as roads.
Retail developers are required to conform to planning policies and by-laws for retail
development. Developers had to meet zoning laws for the construction of big-box stores. Big-
box stores have to go through zoning and height restrictions. There are two zones: street-related
commercial and large formats zones. They have quite a few performance standards that include
the location of entrance and loading (HPD, 5). Local plans deal with how the community
develops and this translates into zoning bylaws and development charges (HPD, 8). The
developers had to meet the allowed conditions for building setbacks and the amount of parking
spaces needed. Retail developments had to have a strong street presence with smaller stores in
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big box stores case study

  • 1. 1 Chapter 1- Introduction Prologue The purpose of this research is to investigate the connection between big-box store development and local businesses in small urban areas. While focusing on Bowmanville, Ontario, I will be taking a case study approach to find out the affects that big-box stores have on small businesses and urban growth in the area. The following research will focus on the reasons as to how, why and what factors are contributing to big-box development in Bowmanville and the challenges that they propose on small businesses in the downtown. The central question guiding this research is; how does the introduction of big-box stores impact urban growth and retail development in small urban areas? From this question, I will achieve the following objectives: First, is to critically examine scholarly journals relating to big- box development. Fulfillment of this objective will involve a review of academic literature pertaining to retail geography, urban growth and local economic development. These categories will connect the development of big-box stores to geographic research in areas such as urban and economic geography. Second, is to determine why big-box stores were planned for the outer edge of Bowmanville away from the downtown core. Achievement of this second objective will involve the evaluation of municipal planning documents regarding commercial development. It will also be done through interviews with the head of the planning department and commercial development officer. My third objective is to analyze the challenges associated with major retail development. This will be accomplished through one-on-one semi-structured interviews with the local and
  • 2. 2 regional councillors, the manager of the Bowmanville Business Improvement Association and the head of the Clarington Board of Trade. This will examine various challenges associated with retail development such as impacts on population growth and economic development. My final objective is to examine how big-box stores impact small businesses in the downtown through interviews with the manger of the BIA as well as distributing surveys to downtown business owners. By fulfilling this objective, I will determine how downtown businesses are impacted by big-box stores. I will also find out if certain retail businesses such as clothing stores are affected by major retail developments than other types of stores. I have chosen to employ a case study approach for this thesis which will explore the specific study area of Bowmanville, Ontario. As a result, a case study provides a useful approach to addressing the impacts and challenges that big-box stores have on small urban areas. In recent years, Bowmanville has seen the addition of big-box stores on the retail landscape. Since the early 2000s, there has been a rapid expansion of large-scale retail development particularly in the west end of Bowmanville. Since the recent development of large retail outlets like Wal-Mart, I was curious of how it not only affected urban growth but also how it impacted local businesses as well. This has changed not only the urban landscape, but also the retail landscape as well. The main goal of this research is to critically examine how the introduction of big box stores impacts urban growth in the small urban area of Bowmanville. Structure of the Thesis In terms of organization, the structure of the thesis will take on a comprehensive approach to exploring the effects the big-box stores have on small urban areas. From there, I will
  • 3. 3 narrow my focus of my thesis on Bowmanville and the challenges and impacts that big-box stores have on the downtown businesses as well as planning policies. I will begin this section by defining the impacts that big-box stores have on small urban areas, as well as how it affects urban growth trends in these areas as it relates to my research. Once this context is established, I will proceed to situate these impacts and my research within a review of academic articles relating to big-box stores, particularly within retail landscapes, urban growth and local economies (Chapter two). Within the literature review, my research falls under three categories: retail geography, urban growth and local economic impacts. In Chapter three, I will move to a profile on my study area which covers the town of Bowmanville. In this same chapter, I will also explain the importance of a case study; review my methods and the rationale for my interviews and surveys. From here, I will present the findings of my research and examine how they connect to my research objectives (Chapter four). In Chapter five, I will proceed to analyze these findings by identifying the impacts associated with big-box development in Bowmanville and determine the possible solutions to these impacts. This section will also compare the results of my research to the academic literature and propose recommendations to integrate big-box stores into Bowmanville’s changing retail landscape. To conclude, I will provide a brief summary of my overall research, evaluate my objectives, reflect on my research, discuss any limitations, identify areas for further research and emphasize the importance of doing this research (Chapter six). Before I begin, I will provide a timeline on my research process. I was granted approval for this project in June of 2011. I began the review of scholarly articles in September and October of 2011. I received ethics approval for my primary research in early December. I began interviews in early January of 2012 and ran until the twenty-third of that month. My surveys
  • 4. 4 were distributed to downtown retail businesses in early January and were returned to me between early to mid-February of 2012. The research will hope to gain more knowledge about how big box stores contribute to urban growth in small urban areas. Also, how location of big box stores plays a factor in impacting urban sprawl. Another benefit is learning how local businesses are affected by major retail development. Impacts on Planning Policies Planning policies have been impacted by the introduction of big-box stores because of zoning restrictions and land use. Big-box stores are connected to impacts on urban growth and sprawl. Grant and Perrot (2011) stated that big box stores go against the notion of good planning because they require a certain amount of land for the retail site as well as parking spaces. Before one attempts to analyze the impact of big boxes on more traditional retail forms, it is important to define the term "big-box retailing." In general terms, the big boxes are large-format stores that typically range in size from 20,000 to over 150,000 square feet (Jones & Doucet, 2000). They lead to new types of commercial clusters called power centres and power nodes (Hernandez & Simmons, 2006). Power centers generally contain 250,000 square feet to 1 million square feet of retail space (Filion, 2001). Big-box stores are a planning issue because they consume large amounts of land to build these developments. This affects the construction of infrastructure such as roads and parking lots because big-box stores are typically auto-oriented retail developments. These stores are typically associated with heavy traffic around these areas. Urban sprawl is a driving force behind retail development because of accelerated population growth and unsustainable land consumption.
  • 5. 5 Big-box development has challenged planning policies regarding size and height. These impacts typically were not anticipated in zoning and development regulations developed prior to the meteoric rise of such large-scale retail (Hernandez, 2003). As a result, many communities are re-working policies and development regulations to provide better guidance in making decisions. The Changing Local Economy Existing literature explains that the recent introduction of big box stores in Canadian cities has altered the competitive retail landscape. The rapid restructuring of the urban retail landscape began in the early 1990s with the introduction of big box retailers (Jones & Doucet, 2001). Changes in retail landscape impact local economies because it leads to the departure of small businesses. The most visible impact is the disappearance of small, locally-owned businesses located in downtowns. Small businesses struggle to compete with big-box stores because of the notion of long hours and lower prices. In some communities they have been viewed as an antidote to a declining economy, promising new sales tax revenue and jobs (Lowe, 2005). The integration and application of these technologies permit big-box retail outlets to generate lower product prices and margins, while still maintaining an acceptable level of profit. These retail formats have introduced a new form of competition to almost every retail category (Jones & Doucet, 2000). Collectively, they have significantly altered the map of Canadian retailing. Understanding the broader context of the impacts of big-box stores on small urban areas such as challenging planning policies and changing local economies are an important aspect in my research. This helps examine factors behind big-box development such as urban growth and sprawl as well as the changing dynamics of local retail economies. The changing local
  • 6. 6 economies and impacts on urban growth and sprawl will be explained in greater detail in Chapter Two.
  • 7. 7 Chapter 2- Literature Review Big-box stores according to Hernandez and Simmons (2006) are retail outlets that are several times larger than the average store of the same sector. These stores are also called ‘category killers’ because customers were attracted to the prices or selection at a particular store. Big-box stores have changed the way people view small urban areas. The recent introduction of big box stores in Canadian cities has altered the competitive retail landscape. It began in the early 1990s with the introduction of big box retailers (Jones & Doucet, 2000). The changes in retail landscape and urban growth are interconnected through big box stores contributing to rapid urban sprawl as they are normally associated with suburban expansion. Big box stores lead new types of commercial clusters called power centres and power nodes. They challenged planning policies and the changing retail hierarchy in North America. With urban growth and changing retail structure, the most visible impact of big box stores is the disappearance of small, locally- owned businesses (Hernandez &Simmons, 2006). The topic of big box stores and urban growth fits into geographic literature regarding urban and economic geography. The literature review seeks to critically analyze scholarly works related to the concepts of retail development and urban growth in small urban areas, and more specifically, how retail developments impact downtown businesses and local economies. First, I will analyze scholarly contributions focusing on retail geography. Secondly, I will focus on how retail geography is tied to urban growth and sprawl which is the main concept of the thesis. Third, local economic impacts regarding big box development will be indentified. I will conclude by indentifying any of the gaps within existing literature will be addressed which will be helpful in raising questions for my research design and methodology portion.
  • 8. 8 Retail Geography The main themes in retail geography evaluate how the contemporary retail landscape changed over time and how planning is connected to retail development. The most important contribution to the concept of retail geography is the contemporary works of scholars Jones (2000), Doucet (2000) and Hernandez (2003). Their works addressed how big box stores were involved in the evolution of Canada’s retail landscape and how urban planning is associated with retail geography by explaining various factors such as location and land use. In the historiography of American consumer culture, nineteenth-century department stores have long stood as harbingers of the rise of a national commercial society (Howard, 2008). The retail landscapes of urban environments reflect the immense diversity of social class, incomes, lifestyles and business formats that build cities. Scholar Ken Jones (2000) states that Canada’s retail geography is a product of two distinct retail systems- the planned shopping centre hierarchy and the remaining unplanned retail areas. Arnold & Luthra (2000) argue that large format retailers affect the differences of demographics in consumers, rapid growth in market share and decline in various commercial sectors. Consumer preference plays a role in the evolving retail landscapes. This increasing mobility has allowed consumers to exercise a greater ability to choose between shopping centres (Guy, 2007). According to Howard, downtowns have been succeeded by the ubiquitous strip mall, the suburban shopping centre and then big box stores (2008). Big box stores are a relative recent phenomenon which is a part of the modern retail landscape shifting from downtowns to shopping centres to strip malls. Big box stores are responsible for the decentralization of the retail structure by encouraging out-of-town retail (Lowe, 2005). According to Gruen, to survive this combination of oversupply and under-demand
  • 9. 9 in the '90s, shopping center owners and managers will need to strive for market dominance as never before (1993). The notion of big box stores contributes to the evolving contemporary retail geography. Big box stores have contributed to the competitive market by drastically altering the modern retail landscape. According to Howard, department stores adopted modern, big-store, corporate business methods to flourish in the early post-World War 2 period (2008). Hernandez (2003) argues that over the last decade- merger, acquisitions and internationalization have characterized most developed retail geographies; driven by a range of factors such as increased competition and saturation in existing markets many major retailers have adopted internationalization strategies. This means that most big-box stores like Wal-Mart and home depot have become large, international dominant retail chains. Harris (2006) argued that national chains not only changed how America shopped for retail goods but changed how goods were sold. They also changed the distribution structure of retail trade. Big-box stores like Home Depot challenge the supply-chain model and buying direct-from-manufacturer to secure goods at low prices (Hernandez, 2003). Evans-Cowley (2008) states that cities need to understand the neighbourhood effects of big box retailers. They should ask where large-scale retail would is most appropriate in this community and what will the impact be on other retail areas in the community? Since their introduction, big-box stores are increasingly becoming supercentres thus increasing the competitive present retail landscape and mixing retail uses. Since 1990, Wal-Mart has been transforming its traditional department stores into supercentres (Hicks, 2009). A supercentre according to Guy (2007) is a non-food store that sells clothing, grocery items and other retail goods such as electronics. Canada’s retail landscape has undergone a significant transformation and rapid evolution that has questioned the vitality of large parts of the existing retail structure.
  • 10. 10 Big box stores not only altered the retail hierarchy but it has challenged planning policies in terms of land use and aesthetics. Planners across the country have developed regulatory strategies to try to control the location, appearance and impact of big-box retail in their communities (Evans-Crowley, 2008). In 2011, Grant and Perrot argued that big box stores defy the notion of good planning because power centres require a certain amount of land for the retail site as well as parking spaces. Hernandez and Simmons (2006) assert that urban planners have been unable to enforce retail planning restrictions as huge power retail concentrations have emerged in unexpected locations across Canada. In 2005, Lowe argued that retail developers were prepared either to buy sites outright, or to go into partnership with the agencies and inject funds into improving sites and providing infrastructure such as drainage and new roads. In return for the investment, they were able to build stores which might not in the normal way be allowed through the planning system. Also, some communities have adopted a higher level of architectural treatment and regulations to ensure that superstores relate better to their urban environment (Sampson, 2008). The size of big-box stores is also a major planning issue. Hernandez (2003) explained that big-box stores typically range from 50,000-135,000 square feet. Aesthetics are a concern for urban planners. The physical appearance of off-centre retailing has been much criticised: essentially most stores are large, single-storey, concrete boxes with a prominent logo to announce the identity of the retailer, surrounded by an area of tarmac required for car parking and delivery access (Nunn, 2001).Guy (2007) states that the developer is criticized either for the ‘alien intrusion onto the urban landscape or if the building is adorned with intricate building or colourful cladding. Many cities have regulations regarding signage and land use. Big box retail development can be retained in more attractive settings through better urban design and landscaping of parking lots.
  • 11. 11 Location plays a major role in retail development. Jones and Doucet (2000) argue that of all big-box locations, 59% are on industrial lands and close to expressways. Planners and developers usually locate big box stores near highways or major roads for easy access. Many municipalities have found that their goals of controlled commercial competition within a commercial hierarchy have been outflanked by new retail developments in distant municipalities and unconventional locations, such as redeveloped industrial sites or areas zoned for warehouses (Hernandez &Simmons, 2006). Big-box stores are based on low margins and high sales per square foot that are aided by low land costs and labour inputs. These retailers occupy highly accessible expressway/highway locations (Jones, 2000). A typical commercial cluster called a power centre or power node would be found at the edge of a city. Power centres consist of a cluster of big-box stores within close proximity to each other (Jones & Doucet, 2001). The number of power nodes has increased substantially in the last decade, particularly in suburban areas (Hernandez, 2003). Most power centres are built in industrial areas and are situated near major roads or expressways for accessible retail landscapes. Inadequate research has been done on how urban planners are connected to retail geography. There is a significant focus on the history of retail geography, particularly on the changes in the contemporary retail system from World War 2 until present day. Studies tended to focus on particular elements associated with the retail system such as consumer behaviour and demographic shifts. Most of these studies adopt a micro-based approach. The literature focused on the broad spectrum of retail geography showing how it evolved over time from downtowns to shopping centres. A few articles focused on how location of big-box developments is a factor in changing retail landscapes. However, more articles focused on the planning approach of big-box
  • 12. 12 developments in urban areas such as utilizing land use and zoning regulation. More research could have been contributed to how urban planning is related to retail geography. Urban Growth and Sprawl The changing retail geography is connected with urban growth. The common argument stated in these journals is that big box stores are the driving force behind urban sprawl because of their unsustainable land consumption. Peiser (2001) states that urban sprawl is the ‘gluttonous’ use of land, uninterrupted monotonous development, leapfrog or scattered development and inefficient use of land. There are several causes of urban sprawl such as the building of new middle-class subdivisions, shopping centres and industrial parks. These land uses accelerate urban sprawl because of land consumption away from the urban centre. As discussed in the previous section, big box stores are normally located at the edge of urban environments in areas called ‘edge nodes.’ Sprawl is associated with big-box development because large vacant sites needed for development are typically found at the edge of town. Retail developments, hypermarkets and other large-format retail are now built outside of the city centre (Guy, 2007). Jones and Doucet (2001) argue that the growth of big boxes illustrates the form of retail development that results from permissive land use policies. Evans-Crowley (2008) explains that new big box stores are being constructed in Greenfield areas which are undeveloped pieces of land. Retailing in suburban areas, in contrast, it had a narrow function restricted largely to providing everyday goods to local people (Guy, 2007). Filion (2009) argues that big box stores are unlikely to favour locations within nodes when plentiful sties with comparable automobile access and abundant parking space are available at a lower cost. The location of big box stores in edge nodes allow for low-density development that promotes car use (Nunn, 2001). Twice as many opened in the suburban fringe as compared to the equally populated central area (Jones &
  • 13. 13 Doucet, 2000).Turner in 2007, described land consumption of big box stores as it takes as given the availability of a remote retail sector to anyone willing bear the cost of driving to it, and considers the entry decision of a local retailer, along with decision of immigrants to locate in a neighbourhood on small or large lots. Large lots provide utility to their owners, but serve to reduce the number of people in the neighbourhood. Most big-box stores consume not only for the building itself but also for parking lots and roads. Guy (2007) argues that the use of cars for shopping also encourages single-purpose visits to large stores in which many different items are purchased. He also states that big-box stores should be accessible by public transit, bicycle or foot and should not lead in an increase in private car travel which could lead to an increase in urban sprawl. The factors behind urban growth and big box stores include accelerated population growth. Lowe (2005) stated that large-scale retail developments were built in connection with the development or expansion of towns. Big-box stores are used to serve newly-developed residential areas and are likely to exceed city centre development which decentralizes the residential area from the city centre (Nunn, 2001). Rapid population growth is associated with the introduction of big box stores which introduces a new consumer base (Howard, 2008). Filion (2009) explains that the amount of growth the nodes face is contingent on prevailing metropolitan-wide development trends and the nature of the growth reflects these trends. It means that the rapid population growth in suburban areas leads to new retail developments and urban landscapes. The development of big-box stores is posing a threat in the twenty-first century to small urban areas. Hernandez (2003) states that big-box stores look to smaller urban areas for continued growth. Haltiwanger et al (2010) argue that big-box stores place their mark on rural
  • 14. 14 countryside as they stand out as noticeable development along empty stretches of land. There are various concerns regarding small urban areas such as the protection of rural countryside or control of the use of automobiles (Guy, 2007). This is controversial because big-box stores tend to be situated on farmland. In the future, a large proportion of retail space will be occupied by big boxes and there will be a gradual extension of power centres into smaller urban markets (Hernandez &Simmons, 2006). Towns fear that big box stores like Wal-Mart will be a magnet for more land-hungry stores, subdivisions and will hasten the deterioration of the commercial centre (Peiser, 2001). Filion (2009) argues that small urban areas will grow faster with low- density land uses and a rigid specialization of land uses caused by power nodes. Howard (2008) sates those studies of rural consumers challenge the notion of a homogeneous, urban-focused consumer society. Consumer society not only came later to rural areas, it also had a different meaning. Areas with a heterogeneous rural-urban population distribution are likely to face impacts regarding big box centres (Hicks, 2009). Big-box stores pose a threat to small urban areas by promoting urban sprawl and growth. They also encroach on rural countryside. Filion (2009) explains that Smart Growth is a solution to reduce car dependency in big- box suburban areas. It calls for forms of urbanization that are more compact, transit friendly, conducive to high-quality urban life, and less environmentally damaging and infrastructure hungry than present urbanization patterns. Above all, it is sprawl, characteristic of North American urban growth since World War 2, which is targeted by the smart growth movement (Filion, 2009). At some point in time they dominate the provision of new shopping centres in sprawling suburbs.
  • 15. 15 Major gaps in the research include that there were only a few articles that addressed how big box stores were a product of urban sprawl. Some articles stated that big box stores do not accelerate urban sprawl but rather how they are contribute to urban sprawl through rapid consumption of land and countryside. Also, most articles tended to focus on suburban areas in large cities like Toronto rather than small urban areas themselves. Only a few articles discussed the impact of big-box stores on urban growth in small urban areas. Little research has been done on how population growth in small urban areas is connected to the development of big box retail. Overall, the articles pertaining to big box stores and how they are related to urban sprawl and growth had conflicting views on this concept. Local Economic Impacts As a result of urban growth and sprawl, local economies are facing competition from big box stores for business. One of the most noticeable economic impacts is the departure of traditional “mom and pop” retailers. Hicks (2009) discusses that small businesses are non-chain or small chain stores selling traditional retail items. This type of retail is commonly found in small urban areas. Howard (2008) explains that this is accepted wisdom today—something obvious to anyone who has walked or driven down any of the countless "Main Streets" of small towns across the United States in recent decades. Empty red brick or stone buildings with faded signs and stained facades stand as a memorial to a past era of downtown retailing (Howard, 2008). Jackson (1996) states that small towns have seen their shopping districts wither and die. Old businesses are boarded up and abandoned and other structures are poorly maintained in downtowns. The impact of big-box stores on downtowns is increased vacancies and neglected urban landscapes. Haltiwanger et al (2010) found that there was a substantial negative impact of big-box entry and growth on the economic growth at both single unit and especially smaller
  • 16. 16 chain stores. Evans-Crowley (2008) argues that on average, four small retailers close five years after a new Wal-Mart opens. It is found that big box stores accounted for at least 50% of the decrease of small retailers. According to Lowe, power centres in edge nodes are severely affecting downtowns. It is considered important that cities make themselves attractive in the face of what was seen to be unfair competition from out-of-town centres with easier accessibility (2005). Big box retailers such as Wal-Mart are challenging local retailers and changed the way people shop for commercial products because they offer one stop-shopping unlike downtowns (Harris, 2006). They contribute to the decline of traditional retail districts such as the main streets of small urban areas. The rapid decline of traditional downtowns was due to steady decentralization of the population over the decades, has shifted the market emphasis of downtowns towards suburban residents (Robertson, 1997). Howard (2008) argues that local businesses are disappearing because of the competitive nature of big-box chains in local markets. Guy (2007) stated that big-box stores weakened the local monopolies of independent retailers in urban areas. In order for a downtown business to be successful in a competitive retail environment, downtown retail cannot exist in a void. A solution to this problem according to Peiser (2001) is that in smaller towns, big-box retail development can be moved to downtown locations to reduce the negative impact that suburban locations have on downtown vitality. The most important policy for protection of downtowns is support for the small retailer and the independent sector (Guy, 2007). A strong local economy requires an organic relationship to the downtown is necessary if downtown retailing is to prosper. The most visible impact of large format retailers is the decline of the community economy and economy of the local markets. The reason why local businesses are leaving is the result of the sales model of big-box stores. Price competition between big-box stores and small businesses is a huge factor in the
  • 17. 17 sales model of large-scale retailers. Big-box stores are based on the sales model that is centered on high customer-service and everyday low pricing (Hernandez, 2003). Entry of supercentres not only brings lower prices from these retailers but through competition reduces prices of competing businesses (Harris, 2006). The reductions in costs achieved through innovations in logistics and operations within big box stores put pressures on the retail margins throughout the retail system (Hernandez & Simmons, 2006). Evans-Crowley (2008) argues that big-box retailers of all sizes are finding customers who want the convenience of one-stop shopping and low prices. Hernandez states that a relatively small number of foreign-owned big box stores can dominate local retail markets and gain a considerable national market share (2003). He added that the sales model of big-box retailers is through a cannibalization strategy that aims to secure markets through contagious organic growth (2003). Small businesses feared that liberalized trading hours would ruin local businesses and lead to American-style big-box retailing (Jackson, 1996). The main economic impact, according to Guy (2007) is the loss of trade in pre-existing stores and centres caused by consumers using a new store, particularly outside of local economies. Superstores tend to take trade from town centres. There is an increased leakage of profit associated with big-box stores because very little profit from major retail chains goes into the local economies (Arnold, 2000). Hicks (2009) discusses that the net effect on retail sales is less than the total sales of a new Wal-Mart clearly suggesting that some existing retail trade is lost to a new Wal-Mart. Sampson (2008) argues that big-box formats have a positive impact on sales revenue and per-capita spending in the retail sector. Many traditional retailers have feared the price competition from big box retailers because of their lower prices leading consumers to shop elsewhere. Big-box stores allow for locally-owned businesses to suffer because of their sales model.
  • 18. 18 Big Box stores tend to erode the social capital and disrupt revenue of local goods in small urban cities. Harris (2006) explains that big box stores such as Wal-Mart often result in a loss of social and civic capital. Local governments may have to balance loss of social capital with potential source of increased sales tax revenue. What governments fail to calculate is that sales tax gains in one area are often offset by losses from those existing retailers who are less able to compete as well as cost of servicing infrastructure (Gruen, 1993). In the 1970s and 1980s, control from the federal and state governments appears to have been more negligent to build up a tax base, such that some suburban communities allowed off-centre developments in order to increase tax revenues (Guy, 2007). Within the metropolitan area, power retail has eroded the traditional relationships between community markets and the set of retail facilities they support-- by serving customers dispersed across wider regions (Hernandez & Simmons, 2006). Jackson argues that organized labour believes that expanding legal shopping hours would introduce part- time employment and cheap wages and cheaper transportation as a result of eroded social capital (1996). Most of the social benefits are paid at the state and federal level, but local communities also feel effects through expenditures in the city or county health department, affordable housing programmes, and public transit (Evans-Crowley, 2008). Big-box stores have put a strain on local governments because communities feel the effect of loss of social capital and big-box stores have eroded the relationship between community and the company. Some gaps in the research include job creation from big-box stores; additionally, the impact of big-box stores on the local downtown economy and downtown businesses themselves. There are also a limited number of articles on how the sales model of big box stores contributes to the decline of small businesses in small urban areas. The research mostly focused on the impact of employment patterns in small urban areas rather than small business impacts. Some of
  • 19. 19 the research tended to focus on employment patterns and the wage structure of big-box stores which is not part of my research. Most studies focused on their impact on small markets, not on the small-scale point of view. There is a significant focus on Wal-Mart because this superstore chain has proven to have significant local economic impacts on small urban areas. Inadequate research has been done on the direct economic impacts of big box retailers on downtown areas. Also, only a few articles discussed how big-box stores contribute to the loss of social and economic capital. Overall, the research did not focus on job creation from big-box stores and direct impacts on the downtowns themselves. Summary This literature review was useful in explaining how the concepts of retail geography, urban growth and local economic growth were connected to the introduction of big box stores in small urban areas. These concepts were interconnected throughout the literature review because some concepts tended to overlap. For example, retail geography and urban growth in terms of location, planning issues and land use. Scholarly articles by Jones and Doucet (2000), Hernandez (2003 &2006) among others demonstrated how the changing retail landscape is a driving force in urban sprawl and changing urban environments. They also found that protection of downtown retail environments is vital for the survival of traditional retail environments. This section provided more insight into how they retail landscapes are connected to urban growth and local economies. Big-box stores were involved with the contemporary shift in retail geography. Planning challenges included location and land use policies regarding size and parking. They also contribute to urban sprawl by being placed on the rural fringe of small urban environments. The most significant threat to local economies is the disappearance of
  • 20. 20 independently owned-businesses. Overall, the research was well done. However, most articles tended to focus on large urban areas such as Toronto instead of small urban centres. More research could have been done on how big box stores affect local economies and small businesses. I intend on investigating how big box stores affect urban growth and downtown businesses in a small urban area such as Bowmanville. Particularly, how does sprawl change the urban retail landscape? A concluding statement by Hernandez and Simmons (2006) explain that rapid growth or a change in accessibility within the urban market provides the opportunity for a new retail form. The new retail form temporarily absorbs much of the growth in the market until a new equilibrium is reached in which the market share of the new form stabilizes. The thesis contributes to further expanding research on the effects of big-box stores in small urban areas.
  • 21. 21 Chapter 3- Research Design and Methodology Introduction This section will introduce my chosen research methodology and to describe the process by which I intend on fulfilling my research goals and objectives. The following field area and methodology will begin by outlining the impact of big box stores on urban growth as a research problem. In doing so, I will provide evidence for why a case study is important in addressing the issues stated in this project. As my case study takes place in Bowmanville Ontario, I will be providing a descriptive profile of Bowmanville, including a summary of past and present urban growth trends within the region. Next, I will discuss the methods and data collection I will be employing, which will include interviews and surveys. I will highlight the type of interviewing that will be undertaken, the importance of interviews and the ethical consideration of my methods. In addition, I will describe the types of questions I will use for my surveys. Also, how surveys will be useful in my data collection. There will also be a rationale as to who will be chosen for my research methods for this case study and why. Finally, I will be describing my process of data analysis. With regards to my interviews and surveys, I will be developing a coding structure to assist in data organization and analysis. For my purposes, I intend to collect the data from my interviews via digital audio voice- recording. To analyze all my data, I plan on using a qualitative approach to coding the data to develop common themes, which relate to my research question and objectives. Employing this approach will allow me to directly compare my findings with my objectives and evaluate whether my objectives have been achieved. By comparing my results with my research
  • 22. 22 objectives, I will be able to draw clear conclusions to answer my research statement of how big- box stores impact urban growth and downtown businesses in Bowmanville. The purpose of this section is to explain how I will be proceeding with my research with regards to data collection and analysis. Qualitative Research Given the exploratory nature of this research topic the use of qualitative research methods will be appropriate to define and clarify the human environments, experiences, and socioeconomic processes that I intend on studying. Qualitative research seeks to understand the ways people experience the same events, places and processes differently as part of a fluid reality; a reality constructed through multiple frames of reference and systems of meaning- making (Hay, 2008). It draws on methods to reveal and interpret the complexities and significance of how a person understands a certain issue. I am addressing what perceptions are evident within Bowmanville with regards to big-box store development and how it affected the urban landscape; therefore, qualitative research meets these objectives Above all, qualitative research plays a major role in the combination of multiple methods used in a search of validity and corroborative evidence. Qualitative research will be a fitting approach to my research as it will assist in verifying, analyzing, interpreting and understanding human behaviours and situations of all types (Hay, 2008). The qualitative methods that will be used in the research include interviews and surveys. Furthermore, qualitative methods are an important research tactic to explain difficult cases such as retail development and planning. Those are complex issues which can easily be done with a group of committed stakeholders and strong land use planning objectives. Achieving
  • 23. 23 cooperation and agreement from multiple interests and conflicting needs is challenging (Ministry of Municipal Affairs and housing, 2009). The combination of factors require a closer examination of an area to better understand and demonstrate this location’s urban growth and retail landscape as well as associated challenges; thus, the reason for a case study for my research approach. The knowledge recorded in the interviews and surveys may reveal those key underlying social structures apparent in urban and economic development within the municipality. Profile of Bowmanville I have chosen to employ a case study approach to explore a specific study area to examine variability among different areas. By focusing on Bowmanville, I am able to examine macro trends and how they play out in a given context which will allow me to examine concrete solutions for that area. In the case of my research project, I have chosen to examine Bowmanville. The town of Bowmanville is the largest community in the Municipality of Clarington. It is one of the largest municipalities in the GTA with a land size of 611 square kilometres. Other than Bowmanville, other communities in Clarington include Courtice, Newcastle and Orono. Clarington was formed in 1974 as the town of Newcastle then it changed its name to Clarington in 1994 as a result of the merging of the former townships Clarke and Darlington. Clarington is situated in the Eastern fringe of the Greater Toronto Area located 40 kilometres from the eastern border of Toronto (Figure 1). It is accessible via Highway 401 and Highway 35/115. Thus, it is of close proximity to major urban centres like Oshawa, Pickering and Toronto. The location makes Clarington an attractive area for potential economic and urban development.
  • 24. 24 Figure 1: The Location of Clarington within the GTA Source: Clarington Board of Trade Bowmanville’s current population as of 2011 according to Stats Canada is 36,700. According to Statistics Canada’s 2001 Census data, Clarington’s population grew 15.2% from 1996 to 2001. That is an annual growth rate of just over 3% per year. The economy of Bowmanville is dominated by service industry and utilities from Ontario Power Generation. It is constantly changing over time because of growth and various social and economic factors. It has a mix of rural landscapes, cultural heritage, recreational opportunities, natural resources and natural environment. Bowmanville is characterized by a variety of landscapes, unique retail areas and numerous recreational opportunities. It captures the spirit of a small town without sacrificing the amenities of a large city. Late in the 20th century, the economic influence of the GTA is continuing to affect land use and settlement patterns in Bowmanville. It faced challenges regarding urban sprawl from the Greater Toronto Area. The increasing rate of residential growth in the absence of balanced economic growth is placing greater burdens on local government to provide services and to ensure the well-being and health of the community (Clarington, 2007). In
  • 25. 25 correlation with the rapid growth, Clarington has a young population. The median age of Clarington’s population is 36.9 years as of 2006 (Hall, 2011). A growing young population is connected to changing retail land uses. Since the early 2000s, there has been a rapid expansion of large-scale retail development in the West end of Bowmanville along Highway 2. Examples of major retail development include Home Depot, Wal-Mart and a Canadian Tire was recently added in 2011. The recent rapid growth in population has lead to the construction of big-box stores in the west end. The big box development in the west end is the only major commercial development for Clarington (Bouma, 2011). The west end, when was until recently a rural space, has transformed the Bowmanville retail landscape. It has encouraged business and residential development to move away from central and eastern Bowmanville. The retail development in the west end provides the highest level of retail services and serves as a focal point for the residents of Clarington. Since this time, the town of Bowmanville was ready for urbanization and to face the needs and challenges associated with urban growth, local economic development and the changing retail landscape. The reason that Bowmanville was chosen for this case study was that it is experiencing rapid urban growth which lead to a drastic change in the retail landscape and local economy. The main reason that big-box development was occurring in Bowmanville was that there was a demand for big-box stores. Since the early 1990s, Bowmanville was dominated by suburban development and two-income families. Retail interests in Bowmanville are established on the market, not the appearance. Zellers and other big-box stores need markets like Bowmanville (Humber, 1997). There was a need for the expansion of strip-commercial
  • 26. 26 development and auto-oriented building forms. Major retail growth is phased in accordance with population growth in Bowmanville and the surrounding area. Growth Trends in Bowmanville The town of Bowmanville experienced major population growth after 1986 as a result of new housing developments mostly in the western section and northern sections. In 1991, the population of the Municipality of Clarington was 51,160; in 2010, it was 86,495 (Durham Region, 2011). That being said, population grew rapidly during this period, particularly between the years 1991-1996. The current average yearly growth is 2.35% (Statistics Canada, 2007). It is one of the fastest growing communities in Clarington alongside the towns of Courtice and Newcastle which are also experiencing rapid population growth. Bowmanville has experienced growth pressures characteristic of the fringe communities of the Greater Toronto Area (Clarington, 2007). The characteristics include an unsustainable consumption of land for housing developments and the construction of big-box stores. Also, allowing for an increasing dependence on automobiles. Cheap land is a key driver for urban sprawl in Bowmanville. Clarington has a large supply of greenfield lands and the municipality has historically had some of the least expensive homes in the GTA. The combination of available land and affordable homes has been Clarington’s competitive advantage for the last 20 years (Salazar, 2011). Urban sprawl is a concern for Bowmanville because of a large amount of land consumed for housing and commercial uses. Neither traditional city centre nor conventional bedroom suburb, the in-between city reflects the ongoing rearrangement and relocation of urban development. For some observers, it is the postmetropolis, or metropolis unbound, defined by market-driven development and car dependency (Saunders, 2010). Bowmanville will continue to grow in size which will result in a change of land use as well as introduce new retail landscapes.
  • 27. 27 The Municipality will continue to grow rapidly because of a large number of people attracted to this area. By 2031, Clarington’s population is expected to grow to 140,300, nearly double the population of 2006 (Clarington, 2007) (See figure 2). The impacts on rapid population growth in Clarington include the need to develop new residential areas, create jobs in Bowmanville and introduce new services such as department stores and health care centres. Municipalities must also come to grips with a series of questions whose potential incomes can have serious environmental, financial and social implications for the future health of the town (Salazar, 2011). Clarington’s continual population growth will have a strain on land use if Clarington continues to develop low-density housing and major retail developments. Total Growth Compound Annual Growth Rate Region of Durham Forecast 1986 1991 1996 2001 2006 35,400 51,400 63,000 72,600 80,900 — 16,000 11,600 9,600 8,300 — 7.8% 4.1% 2.9% 2.2% 35,400 51,400 63,000 72,600 80,900 2011 2016 2021 2026 2031 89,700 100,800 114,100 127,600 140,300 8,700 11,100 13,300 13,500 12,900 2.1% 2.4% 2.5% 2.2% 1.9% 87,900 97,100 108,100 127,500 140,300 Figure 2: Clarington Population Growth Forecast. Source: Hemson Consulting Bowmanville’s Economic Landscape Bowmanville’s economy is mostly dominated by the service industry, particularly in retail. The largest sectors of employment include utilities, retail, tourism, hospitality and construction. Only half of the labour force residing in Clarington actually works in that area (EDP, 2010). The total number of jobs in Clarington is forecasted to increase from 20,900 in 2006 to 38,400 in 2031, which is an increase of 17,500 jobs (EDP, 2010). The major companies that form Bowmanville’s economic landscape is Ontario Power Greneration located south of the
  • 28. 28 401, Lakeridge Health Care and St. Mary’s Cement (Figure 5). Clarington’s great strength in the energy sector is a direct result of it being the home to the Darlington Nuclear station for over 30 years. Clarington’s position in the energy Sector will continue to grow as Clarington becomes home to Ontario Power Generation’s head offices (Hall, 2010). Growth is expected in the construction sector due to the planned population and housing growth and also large planned construction projects such as the Highway 407 Extension, industrial expansion and construction of new retail developments (EDP, 2010). Name Product or Service Sector No. of Employees Ontario Power Generation Electricity Energy 2,500 Municipality of Clarington Local Government Government 700 Lakeridge Health Corporation, Bowmanville Healthcare Health 367 St. Marys Cement Aggregates/Cemen Manufacturer 150 Manhiem Oshawa, Courtice Wholesale vehicle auction Automotive 120 Figure 3: A List of Clarington’s Largest employers Source: Clarington Board of Trade Clarington is part of the GTA regional labour market, and as such has high levels of labour inflows and outflows. Most people living in Clarington work outside of the municipality. In addition to the aforementioned industries, there will be continued growth in population related services such as retail and commercial uses as the population increases (EDP, 2010). It is likely that most of the retail employment growth will be small businesses which are consistent with trends in the broader economy. In 2006, there were 2,060 in the retail sector which accounted for 7.3% of jobs in the Durham Region (EDP, 2010). The economic landscape allows for the encouragement of new retail and commercial developments while promoting the downtown area
  • 29. 29 as an attractive location for retail, office and tourism purposes (Clarington, 2007). Factors that influence economic growth in Bowmanville include population growth and land availability for employment uses. Clarington’s local economy will continue to grow because of major infrastructure projects that have been proposed for this area. Sustainable Growth Bowmanville is moving ahead with sustainable growth policies in response to managing dispersed growth. The Growth Plan is a policy as required by the Places to Grow Act in 2005. The plan guides decisions on a wide range of issues – land use planning, urban form, housing, transportation and infrastructure planning and natural heritage and resource protection (Durham, 2007). Increasingly there is recognition that traditional urban patterns have a host of negative unintended impacts on our economy, society and environment (Salazar, 2011). This trend is consistent with other jurisdictions across North America where urban centres consume more and more space per person (Ministry of Infrastructure, 2007). Most of the housing densities in Bowmanville and the surrounding area is low-density housing. The number of houses constructed varies per year and it is expected to increase (Figure 3). Clarington’s Growth Plan targets will assist the Municipality to understand the implications of shifting from lower density to medium and higher density housing and employment patterns (Salazar, 2011). The plan tackles some of the challenges facing growth and the municipality examines how, when and where growth should occur in certain communities. A key reason for sustainable growth is to understand the effects of the policy-based challenges to growth patterns that are envisioned by the Growth Plan. It allows for Bowmanville and area to meet the needs for the growing population in the future. Needs include developing a plan to achieve gross density target of 200 residents and jobs, combined, per hectare in the year 2031 (Durham, 2007). Another goal is to
  • 30. 30 achieve higher densities of development within the municipality. The purpose of the sustainable growth policies is to control rapid urban growth which is a result of urban sprawl. Another reason is to plan and manage growth to support a strong and competitive economy. Figure 4: New Residential Units Approved for Construction Source: Clarington 2010 Growth Trends Review Another solution to sustainable growth is intensification. It is higher density developments in an urban area (Salazar, 2011). This method encourages mixed-use developments, Brownfields and medium-to high density developments. It is an important policy objective because it is a response to unsustainable growth in most Canadian cities. However, the growth and expansion of North American cities was underpinned by at least three basic conditions: 1) relatively inexpensive and abundant raw land at the periphery; 2) cheap fossil fuels; and, 3) fast and efficient automobile travel (Salazar, 2011). Intensification strategies will encourage it generally through built-up areas, identify intensification areas, plan for a mix of housing and encourage secondary suites throughout the built-up area.
  • 31. 31 Planning Retail Recent developments in the north and western sections of Bowmanville have allowed for more retail to be developed in these areas. According to the commercial policy review, retail space per capita increases as the population increases. In 2003, the existing space per capita in Clarington is about nine square feet per capita (Clarington, 2005). The additional space per capita increased with the arrival of big-box stores in the late 2000s. Planning documents show that the amount of space needed for retail increases with population growth. The Changing Face of Retail Plans for new retail development in the west end began as early as 1993. A new Zellers and strip mall development were planned at the time but were constructed in 1998. Residents were concerned about the appearance and land usage of new retail developments. The one issue, in the view of residents is size and aesthetics. Residents were concerned with the appearance of the developments. There were concerns regarding size and the amount of land used for parking spaces. The maximum gross leasable floor space for retail uses in West Bowmanville is 100,000 square metres (Clarington, 2007). It is the maximum floor space allowed on a development parcel of land. New developments should match the character and identity of the historic downtown of Bowmanville regarding appearance. In attempting to modernize the impact of new retail development along Bowmanville’s fringe, the Municipality of Clarington had supported plans to provide at least some form of visual connection and identity between proposed development on Highway 2 and that of the older businesses in the core of Bowmanville (Humber, 1997). Residents were concerned that they would be ugly developments that would get uglier as time moves on. That being said, there were concerns regarding aesthetic appearances on new strip mall development. Like the downtown, new retail developments not only have
  • 32. 32 automobile access, but also have pedestrian access as well as landscaping, lighting and other streetscape amenities. There were also concerns about the disappearance of small businesses in the downtown core as well as preserving the character and vitality of the downtown. Many of the merchants are trying to anticipate the changes they will have to make to maintain their portion of the market share and viability of their enterprise (Clarington, 2011). There were ongoing criticisms and controversies regarding more recent big-box developments in the last five years. Wal-Mart was proposed in 2006 but it was not constructed until 2010 due to ongoing lawsuits concerning the size and appearance of the store (Clarington, 2011). When it was constructed, it was larger than it was initially planned. Home Depot was constructed in 2008 but it was proposed at the same time as Wal-Mart. In 2007, a proposed large-scale Rona hardware store was constructed at Highway 57 just north of the 401. However, due to financial problems, the Rona never opened and the building still stays vacant today. This year, a large Canadian Tire was constructed making it the largest one in Canada. The resulting landscape reflects a fragmented or recomposed mix of residential, commercial and industrial spaces that are oriented towards low- density economic growth (Saunders, 2010). The controversies regarding big-box developments were a result of challenging planning policies surrounding commercial development. These included zoning laws, land use compatibility, signage and building setbacks from the road. Another criticism of big-box stores is the location. All major retail developments are centered along major roads and intersections. The major big-box development in West Bowmanville is located in the west end along Highway 2 just west of Highway 57 (see figure 4). The area was undeveloped land now used for greenfields development. The majority of the downtown lands were built out and occupied (Salazar, 2011). This is because there is a limited amount of land for development in the central and east areas of Bowmanville. Retail
  • 33. 33 developments are centered away from residential developments because of concerns regarding aesthetics and noise from trucks and other vehicles. The main reason that big-box stores are near major highways in Bowmanville is for quick and easy access to these locations. Figure 5: A Map of the developments along highway 2 in West Bowmanville Source: Salazar, C. (2011). Intensification Discussion Paper. Despite the number of big-box developments, Bowmanville is lacking in other retail developments such as grocery stores and restaurants. The town only has three grocery stores which are not are enough for the rising population. That being said, not all retail developments are growing in accordance with population growth. The growth of big-box stores outpaced the basic retail needs like grocery stores (Humber, 1997). Along with the arrival of big-box stores in the west end came chain restaurants which impacted downtown and independently-owned restaurants in the area. Therefore, the arrival of modern retail developments like strip malls have
  • 34. 34 not only altered Bowmanville’s retail landscape but also affected various independently owned businesses. Historic Downtown Bowmanville and Its Impact on Big-Box Stores When big-box stores were first planned in Bowmanville, there was a concern about preserving the integrity of the downtown. Residents were concerned about the disappearance of small businesses as a result of competition from major retail outlets. New commercial development within the Bowmanville West Town Centre has the long term potential of undermining the shopping function of the downtown area (Salazar, 2011). The downtown has a number of competing land uses such as small shops, financial institutions and restaurants. The downtown is vital to Bowmanville’s local economy and strengthening community development. According to the local Board of Trade, the support of locally owned independent business influences our community by strengthening our economy and enhancing the character and appeal of our towns and villages (2010). Small businesses tend to fund city services through tax and invest in neighbourhood development and also helps protect the character and prosperity of its growing economy. The Historic Downtown of Bowmanville needs residential infilling to support its small shops and businesses, which will come under continued pressure as the nearby Town Centre West area builds out (Salazar, 2011). According to the Board of Trade, downtown improvements are done through the BIA as well as the Clarington Board of Trade. They help promote, enhance and beautify the downtown to make it attractive for retail use. The downtown remains the focal point of Bowmanville for retail, tourism and institutional uses. Big-box stores are tied to Bowmanville’s economic growth because they create retail sector jobs as well employment in construction and distribution. These spin-off sectors are growing due to investments in the retail industry. While these sectors are important parts of local
  • 35. 35 economies, they are not considered to be as significant from an economic development perspective as sectors which are exported based and bring new ‘outside’ money into the economy (such as would associated with manufacturing, energy, and tourism industries) (EDP, 2010). It will be important, however, that adequate lands are available in proximity to residential areas to allow for the growth of these population serving sectors. The retail sector is also a relatively large employment sector but there was little change in this sector’s employment level between 2001 and 2006 (EDP, 2010). This could be attributed to a number of factors such as leakage of retail spending due to a preference of the population to shop in larger centres for bigger purchases, or gaps in the quality or quantity of retail uses in Bowmanville. The problem with big-box stores is that very little profits benefit local economic development (Hall, 2010). Big-box stores according to EDP Consulting have little public benefits and costs and small businesses create more jobs locally than chains do. Employment in retail is expected to increase along with urban growth, particularly with new developments such as Wal-Mart and Canadian Tire. (Clarington, 2011). If Bowmanville continues to grow, there would be changes in the local economy. We would somehow have to transform the local economy to be more oriented towards office, make multi-storey manufacturing and distribution feasible and competitive and actually refuse to accommodate certain types of economic activity if they were not dense enough (Hemson, 2005). Lack of serviced land is a key issue which will impact the timing, amount, level and type of economic development which will occur in the area (EDP, 2010). Planning policies are directly tied to urban and economic growth. Places to Grow policies direct municipalities to ensure the availability of sufficient land to accommodate forecasted employment growth and a variety of employment uses (EDP, 2010). It ensures that necessary infrastructure is provided to support
  • 36. 36 current employment needs and providing an appropriate mix of employment uses including commercial and institutional uses to meet population needs. ResearchDesignand Methods This section will outline the methods of data collection that will be used to gather the empirical data for this research project. The two sources of data are interviews with the informants in Bowmanville and the use of surveys to gather information from downtown businesses. A description of the collection methods will be described in the later sections. Method #1- Semi-Structured Interviews Within Bowmanville, the methods used to obtain primary data for the analysis of big-box development are interviews. Interviews offer the most effective method for direct access to valuable stakeholders on any particular issue (Hay, 2008). My research is dependent on different views from municipal government and economic representatives. Therefore, interviews not only provided the vehicle to get each stakeholder’s view but also aids in the identification of connections between different aspects of urban growth and local economic development. In addition, interviews provide insights into the differing opinions on different issues and in some cases, revealed consensus among respondents (Hay, 2005). In comparison to other methods, interviews can obtain large amounts of contextual data. Moreover, engaging in face-to-face encounters with informants will allow me to obtain information on non-verbal behaviour which helped solidify the respondent’s opinions and views toward certain issues (Hay, 2008). Meeting interview respondents in person also provide clarification on the aspects of urban growth and local economy that I would not acquire form the analysis of literature and other documents. Finally, interviews provide a first-hand perspective on the topic. They help by filling a gap in
  • 37. 37 knowledge that other methods like observation or the use of census data may not have been able to bridge effectively (Hay, 2008). The types to questions used in my interviews include open and closed-answer questions. I have chosen to use semi-structured interviews for my research. Interviews blend both structure and organization, thus providing with enough freedom to adapt and change questions as needed during interviews (Hay, 2008). Semi-structured interviews are interviews with predetermined order, but which nonetheless has flexibility with regard to the position and timing of the questions (Hay, 2008). Each interview will take about one hour to complete. The stakeholders that will be interviewed for this thesis include the municipal planning department, head of economic development, local councillors and the members of the downtown business association (See Table 1). The semi-structured interviews will be conducted with an approximate total of eight to ten individuals. The participants that will be used for the interviews have knowledge related to economic and urban issues within Bowmanville and surrounding area. The individuals are selected as their knowledge of the municipality is believed to be valuable to my research. The informants are chosen purposefully on the basis of issues and themes that emerge from a review of literature. Table 1: Codes Used for Identifying Interview Subjects Date of Interview Department Title Department or Agency Code Used in Interview Analysis and Results January 5, 2012 General Manager Bowmanville Business Improvement Association BIA January 5, 2012 Local Councillor (Ward 2) Municipality of Clarington LC January 6, 2012 Head of Planning Department Municipal Planning Department HPD January 6, 2012 Commercial Development Municipal Planning CDO
  • 38. 38 Officer Department January 9, 2012 Head of the Board of Trade Clarington Board of Trade CBOT January 23, 2012 Regional Councillor (Wards 1 & 2) Municipality of Clarington RC The interview guides that I will use for my interviews are a prompter for myself, but are useful for making notes throughout the process. The purpose of these guides is to separate the type of questions asked to each informant. They also demonstrate the logical flow and path for the questions. This involves approximately six or more questions per section or theme. The questions will be formed from existing literature about big-box stores and Bowmanville that has been reviewed for this topic (See Appendix B). Under central questions, I will use detailed questions or prompts. Pre-determined questions will be used as a potential fall-back in case I will be unable to articulate a certain question on the spot. Each guide will be designed with each informant in mind, as I personalize each question with regards to their job title and roles within urban planning, economic development or municipal government. The use of interview guides allows for flexibility in interviews. As the interviewer, I will allow the conversation to follow a natural direction, but I am able to redirect the discussion to those issues that were left out. Also, questions could be made up on the spot and I can draw out themes already mentioned to carry out natural discussion. Interviews will be recorded via digital recording. Both audio recording and note-taking have associated advantages and disadvantages (Hay, 2008) therefore a useful strategy of record keeping is to combine note taking and audio recording. Audio recorders also assist in compiling the fullest recording, while the primary note-taking allows the researcher to note individual things and mark key messages in the interview. Voice recording technology is used for
  • 39. 39 interacting with the participant. In addition, note-taking is useful for detecting body language or non-verbal actions the respondent made to supplement the speech. Once the data is recorded, it will be transcribed and recorded onto my computer. Transcripts are the best possible record of the interview and they include descriptions of gestures and tone as well as speech. Transcription allows the user to engage with the data again and the re-immersion in data provided for a preliminary form of analysis (Hay, 2008). Method #2- Surveys The purpose of surveys in my research is to discover patterns in attitudes and behaviours regarding my topic of big box stores and downtowns. With surveys, every respondent is asked the same questions, the same way and in the same sequence. They can be used to collect information to clarify respondents or to learn about their behaviour and to understand their attitudes about a certain issue. The benefits of surveys include that they provide insights into relevant social trends and processes. They are also cost-effective given that they are one of the more practical research tools. Lastly, they are extremely flexible. They can be combined very effectively with complementary, more intensive forms of qualitative research to provide more in- depth on social processes (Hay, 2008). The surveys will be distributed to business owners, particularly those affected by major retail development. Types of businesses include clothing stores, shoe stores and opticians (Table 2). Store Category Codes Used in Surveys 4 clothing stores CS Sporting Goods SGS
  • 40. 40 Furniture Store FS 2 Home Improvement Stores HIS 3 Specialty Stores SS Table 2: List of Survey participants and codes Each survey is unique; there are common principles for good design. Producing a well- designed survey for qualitative research involves a great deal of thought and preparation, effective organizational strategies and critical review and reflection (Hay, 2008). The content of surveys must relate to the broader research question as well as to one’s critical examination and understanding of relevant processes, concepts and relationships. The clarity of research objectives is important as it will help me to select a target population and relevant key questions. There are four distinct types of question content. The four types are attributes which aim to establish respondent’s characteristics, behaviour which discover what people do, attitudes and beliefs about what people believe to be true or false (Hay, 2008). The types of questions that I will use in designing my survey include yes/no answers, scaling, rating, category and open answer questions (See Appendix C). When designing surveys, it is important for me to take into account my research objectives and a critical review of literature about big-box stores. Mode of Distribution Consideration for the mode of distribution should be one of the earliest stages in survey design. It has significant implications for design, layout, question type and sample selection (Hay, 2008). The distribution mode that I choose to do is face-to-face. The advantages of this mode include having the opportunity to clarify questions and probe vague responses. Another
  • 41. 41 benefit is that people are more likely to offer long responses that have more depth. The best choice of distribution best reflects the research context and target population. Sampling Sampling is the means of selecting participants for inclusion in a survey (Hay, 2008). It helps determine my target population for study. Since surveys are used to generate claims about the behaviour or opinions about a group of people, samples are selected carefully to be representative of the population. In such cases, a list of the population in question, the sampling frame is required so that a sample can be constructed (Hay, 2008); for example, a list of all the businesses in downtown Bowmanville. The type of sampling that will be used for my surveys is purposive sampling. It is commonly used wherein sample selection for survey respondents is made according to some common characteristic. The businesses in downtown Bowmanville will be classified through types such as retail and services. The type of businesses that I want to survey is retail-type businesses. Ethics Approval The conditions on collection procedure include having to obtain an ethics approval before undertaking any qualitative methods like interviews and surveys. It requires the consideration of ethical issues or circumstances that may appear in the research process. It is useful to consider such formal guidelines as a first step in thinking through the social context of one’s research (Hay, 2008). When doing research that involves people, it is required to do an ethics review. Such committees focus on the researcher’s responsibilities to research subjects and to formulate guidelines about what the researchers should not do in the process. They also offer a useful alternative perspective on one’s research and can point out problems that may have been missed
  • 42. 42 in the development stage of one’s research (Hay, 2008). The purpose of ethics is to prevent any type of harm, whether it would be social or physical, from occurring in one’s research (Hay, 2008). This means thinking through the social context of my research, to ensure the research is conducted in an ethical manner and that consideration for the activities performed during research should be respectful to the participants involved in my research. Before beginning my qualitative research, I will submit my research project and methods to the Trent University’s Department of Geography’s Ethics Committee. This process is important as to being careful to avoid any questions or scenarios which may create problematic circumstances for my research participants. The process involves filling out a Human Research consent form to give to my research subjects. This assists in minimizing any risk or myself or the participants. The approval of the ethics review will allow me to move ahead with my research. Data Analysis A sixty-minute interview will require at least four hours of transcription (Hay, 2008). I will use an extended period of transcription in my research schedule. After I transcript the interviews, I will analyze the data to retrieve results from the interviews. Manifest and latent coding will be used for coding the interviews and surveys. Coding will assist me in the construction of themes within my research, while identifying relations between variables or methods. In addition, coding will aid in the discovery of patterns among data and between methods (Hay, 2008). Manifest coding will be used to draw out most obvious terms such as growth, planning and businesses, but I will also determine latent messages and themes from the data. The manifest terms will stem from my literature. The purpose of latent coding is to determine the underlying
  • 43. 43 meanings of what was said (Hay, 2008). It determines meanings found in the answers. Coding will be the primary method of data analysis and data sorting. It will also make the data accessible for later retrieval. Surveys will be analyzed through four quantitative elements: evaluating the size effects between variables and by doing so taking account of other variables, testing as part of confirmatory data analysis whether the observed effects could have occurred by chance. Also, taking account quantitatively of the complex design of the survey and dealing with non- responsive as well as missing data. Closed questions are easy to code numerically because they provide counts of categorical data. In qualitative answers, the important data often lie in the detailed explanations and the precise wording of respondent’s answers (Hay, 2008). It is best to avoid classifying responses into simple descriptive categories. It assumes that variable and multiple understandings co-exist in a given social context. Timeline of Research My ethics approval was handed to the Geography Department in December and was accepted a week later. My interviews began in early January and concluded January 23rd. The surveys were distributed in early January and were returned via mail in early February. After I transcribed my interviews onto my computer, I began coding both interviews and surveys for my results. Both interviews and surveys assisted with expanding the research on big-box stores in small urban areas.
  • 44. 44 Chapter 4- Results The purpose of this section is to describe the results from my semi-structured interviews and surveys. These findings came from a mixed-methods approach which included interviews, surveys and a review of the Municipality of Clarington Commercial Planning Policy. First, I have recorded the information given within six interviews over the course of the past six months. Secondly, I have compiled the results from the surveys that were distributed to downtown businesses. Third, commercial policy was evaluated for quantitative sales data relevant to big- box stores and economic impacts. Broken down further, the interviews and surveys represent the views of five municipal employees, one Business Association representative and eleven business owners. Overall, my results have stated that big-box stores have a slight impact on the town of Bowmanville regarding urban growth and the local economy. This section will first cover the perspectives of municipal planners, councillors and administrators will be represented through semi-structured interviews. In addition, it will provide a synthesis of how small businesses are impacted by big-box stores through surveys. The intention of this chapter is to provide the general results which stem from my two chosen methods of qualitative study. The results from my interviews and surveys accomplished three out of the four research objectives. The first objective was completed through critically examining scholarly journals relating to big-box stores. The first subsection examines the reasons why big- box stores were planned for the outer edge of Bowmanville. This was accomplished through interviews with the head of the planning department as well as with the head of commercial development, thereby fulfilling the second objective. The next subsection will cover the various challenges associated with big-box development and how these challenges have affected planning policy and economic development in Bowmanville. This was done through interviews
  • 45. 45 with the local and regional councillors and with the head of the Clarington Board of Trade thus accomplishing objective #3 of analyzing challenges connected to retail development. The final subsection determines how big-box stores impacted businesses through the perspectives of the downtown business owners as well as the general manager of the Bowmanville Business Improvement Association. This fulfills objective number four. Why Big-Box Stores Were Planned for West Bowmanville My third objective was to determine why big-box stores were planned for the outer edge of Bowmanville. The big-box stores were planned in Bowmanville west of Highway 57 (See Appendix D). This objective was first fulfilled through examining planning documents in the early phases of research. Interviews with members of the planning department gave the further insight to this objective. Big-box stores were planned in Bowmanville not only because sufficient land that was available, but also because of rapid population growth in that area during the 1990s. The development occurred in two phases; the first phase occurred in 1991 and the second phase occurred in 2005. According to the head of the planning department, the reason that this development occurred was because of the need for more retail space in Bowmanville. Other reasons included rapid population growth and location for development. Major retail development occurred as part of the secondary plan to bring forward an alternative shopping experience. One-stop shopping become prevalent as development changed to larger department stores (RC,4) . It was a move away from traditional retail methods. Various plans and studies were done to determine why retail development should occur in Bowmanville. Commercial development studies were done to determine the amount of commercial space that is available for development (HPD, 5). Other studies included the Official plan review which
  • 46. 46 determines where development can locate and its design goals. The plan review also shows growth projections to 2031 in Clarington. The commercial policy review determines how much impact commercial space has on a certain area without affecting the community (HPD, 6). It looks up where commercial lands can be located. It also measures retail demand for certain types of retail such as department stores, home improvement and grocery stores through measuring sales data. They also did an in-home survey with Clarington to measure retail demand. Collaboration on these retail projects is done with the BIA, developers and lawyers. These studies have shown that West Bowmanville is ideal for retail development because of the amount of commercial space that is available for development. This area has some impact on the community without affecting Clarington in terms of retail competition. In the late 1970s, the east end of Bowmanville was already developed with the first major retail development, the Bowmanville Mall. During the 1990s, more retail was planned in the West end on Highway 2 between Highway 57 and Green Road. Big-box stores were planned in Bowmanville because of the need for more retail space. Retail development was phased according to anticipated demand without the regard for the type of store. The primary reason for phasing the development of commercial floor space in Clarington is to provide for the ongoing health of the historic downtowns and to protect their planned function (Clarington, 2005). This area was chosen because it was the only available land suitable enough for retail development. It was untouched by other developments such as residential. The area west of Highway 57 was the only area that was designated for retail development (CDO, 9). Once the big-box stores were planned in that area, more retail space was added. The Canadian Tire was added in 1992 followed by Zellers. By the late 2000s, Home Depot and Wal-Mart were built on the north side of Highway 2. In the future, retail developments can only expand so far because there is a limited
  • 47. 47 amount of land that can service them. In Clarington, the retail footprint is limited so only a certain amount of retail can be developed (HPD, 10). The West end was designated for retail space because it was large enough to support several big-box developments as compared to other areas in Bowmanville such as the east end (HPD, 13). Rapid population growth in Bowmanville was a reason for big-box stores to be developed. A store may decide to locate in a town based on population growth. The developers look at what stores exist and also of the income of people. Then they multiply it by the population, this is how they measure retail demand by population (HPD, 5). Population is used to measure retail demand because certain retail services such as grocery stores require a certain consumer base to support that business. For example, Zellers was planned during the 1990s because the population was forecast to grow significantly in the future. Retail development is driven by consumers because they pick up price-pointed needs. It also eliminates competition between two businesses in the same area. Clarington was seen as the ideal market for big-box stores because of increasing urban growth (CBOT, 4). Most of the population growth came from middle-income families who use department stores to buy most of their goods. Big-box stores arrived in Bowmanville because there was sufficient consumer base to create a market for retail. Thus, rapid population growth leads to increasing demand for retail services. Demographics play a role in major retail development. Preference of retail is a factor in big-box development. Young people with families tend to prefer big-box stores because of the notion of one-stop shopping and cheaper prices. They are also open 24/7 which makes it more convenient for those who work out of town. Older residents are more likely to support the downtown because they like the comfort of small businesses and meeting people. New residents also like the comfort of having big-box stores because they are predictable and are located in
  • 48. 48 most towns (CDO, 8). Residents wanted big-box stores in Bowmanville they wanted to be closer to amenities and needs are varied for families. Lifestyle preference is important for retail development because young people want convenience and elderly want the local feel of downtowns. Having the big-box stores in the West end creates a balance in retail development for Bowmanville. It was becoming decentralized thus it is a good area for development. There is a balance in retail in the east and west ends of Bowmanville to meet the needs of these areas. The west and east end retail developments act as anchors for Bowmanville’s retail base and the downtown is the central hub (HPD, 4). The downtown is the main area for service businesses and speciality shops whereas the east and west end retail developments are anchors for general retail. The downtown is located in an area which is known as a ‘strange street’. It is an area between two anchors (BIA, 10). The anchors consist of Bowmanville Mall in the east end and the Clarington Plaza and Wal-Mart in the west end. Having a balance in retail types in different areas in Bowmanville reduces competition between existing stores. While Bowmanville West will function as a developing centre able to accommodate larger stores within a pedestrian- oriented grid street system, Bowmanville East will continue to function quite distinctively as the historic Bowmanville Downtown and East Business District focusing on smaller-scale retail, personal service and office uses (Clarington, 2005). The West end was developed because it creates a balance in retail services to support the population of Bowmanville and surrounding areas. Location is important for big-box stores because of easy access. The retail developments are located along Highway 2 for easy access. The West end acts as a gateway to the downtown and east end retail areas. Highway 2 maintains its function of a main street through the town
  • 49. 49 centres and provides an efficient means of access across Bowmanville (HPD, 9). The existing Centres as designated in the Official Plan are and will be central to the growing population. In addition they form the ‘nodes’ along Clarington’s main street, a key element of the long term urban structure objectives (CDO, 5). Location plays a role in retail development because the farther away developments are from a major roadway, the more impact it has on other businesses. If businesses were moved to other areas in Bowmanville, it would affect retail along Highway 2 (LC, 5). For example, a new Rona was developed in the south end of Bowmanville and people were concerned that it could affect not only the downtown but also other big-box stores such as the Home Depot. It also makes it accessible for other residents in Clarington The retail on Highway 2 allows for residents from other areas to use these stores. There are five highway commercial areas as stated in the Commercial Policy Review. They are intended to accommodate uses such as home improvement stores but not become major concentrations of retail space or accommodate uses which are important to the development of key urban centres (such as department or food stores) (2005). Location is important for big-box stores because they are located along main streets for access into other town centres. In the future, retail development will happen in other areas because of growing consumer base. The amount of land that is designated for retail in Clarington is becoming scarce. Mixed- use development will become the future of retail development (CDO, 11). There is a need to return to mixed-used because land is protected. There will also be more intensification in areas between downtown and the West End to lure more consumers into the downtown. There is an increasing trend to intensify more buildings and to introduce services such as medical use (HPD, 10). Intensification and mixed-use will be part of future retail developments in Bowmanville because there is a limited amount of land to sustain future developments. Positive municipal
  • 50. 50 policies, strategies and initiatives should be used to foster the health of the downtowns and should specifically provide for appropriate redevelopment and intensification (Clarington, 2005). The Bowmanville East and West town centres provide opportunities for infill and intensification in these areas. Growth has to happen within the boundaries and there is no expansion of these boundaries. Urban areas can grow in many directions and they cannot expand all at once. The municipality will continue to provide incentives for redevelopment and intensification in all Bowmanville retail centres. Challenges Associated with Retail Development My third research objective was to determine challenges associated with big-box development. It involved interviews with various stakeholders such as municipal councillors and the Board of Trade. The participants in these interviews stated that these challenges can have profound impacts on Bowmanville’s retail landscape. There were not only economic and social challenges, but also challenges regarding planning policies. Challenges and impacts regarding big-box development included keeping shopping dollars in the local economy and having a sufficient population to support these big-box stores. Population/Community One of the challenges associated with big-box stores is that Bowmanville had to have a sufficient population base to support these types of stores. According to the manager of the Bowmanville BIA, when Zellers was proposed in Bowmanville during the early 1990s, the BIA went to the Ontario Municipal Board on two occasions to debate claim that there has to be a sufficient population to support Zellers. However, they lost with the OMB and the Zellers was developed five years later. During the mid-1980s and early 1990s, there was rapid population
  • 51. 51 growth in Clarington and this spurred the demand for big-box stores. Most of the population growth resulted from younger families. Their needs are varied from other demographics such as seniors because they want to be closer to amenities like department stores (RC, 7). However, the downtown businesses were concerned that Bowmanville could not support big-box stores due to the population (LC, 3). When Bowmanville has a sufficient population, then more stores can be built. The population of Clarington is at an appropriate level where more retail can be developed because residents want to be closer to their needs according to the regional councillors. Community Identity Another challenge is the loss of community identity for Bowmanville. Big-box stores tend to erode the identity of small towns because they have no community feel on that town (BIA, 5). As one interviewee noted the downtown contributes to Bowmanville’s identity because most residents tend to associate downtown to where they live. When most people think of Bowmanville, they think of the downtown and not the big-box stores themselves (CDO, 9). The downtown acts as the ‘living room’ of the community (CDO, 9) because people use it not only to buy things, but to socialize as well. People that work in the downtown also visit some of the shops and restaurants and to socialize with people they know. Schools and banks support the downtown because they use the stores to buy things. For example, high school students go to downtown for lunch rather than go over to Wal-Mart or the Bowmanville Mall. Downtowns tend to decay because of a loss of business and this tends to result in a loss of community identity. The manager of the BIA explained and noted that the decay of downtowns can result in an increase in suicide rates. The commercial developments should be focused, not dispersed which, among other things provides better opportunities for transit and an opportunity to create a strong sense of place and identity (CDO, 4).Loss of community identity is a concern for Bowmanville
  • 52. 52 because big-box stores remove that sense of community. As big-box stores appear, there is a loss of importance in the downtown core. Loss of Revenue Loss of local shopping dollars is a challenge for major retail developments. Before big- box stores were built in Bowmanville, people were buying goods outside of the municipality. As a result, money was leaving the local economy. Big-box stores help keep money in the local economy so people do not shop elsewhere. Big-box stores help entail job creation which puts spending back in Clarington’s local economy (CBOT, 25). The head of the Planning department explained that 62 million dollars were being lost from the local economy as a result of shoppers going elsewhere for retail. Residents were not spending money in their community. The Commercial policy review shows the amount of shopping dollars that is being filtered into Clarington’s economy. Sales data for department stores and downtown stores are shown between the years 2007-2016 (Figure 1). Sales for department stores have increased dramatically thus having more shopping dollars returning to Clarington’s economy. According to the Commercial Policy review, Clarington was only capturing 34% of expenditures; it was very low for certain retail sectors such as home improvement. In 2004, people spent 67% of their expenditures in the community, only 17% of spending was in department stores (HPD, 6). This is based on the amount of sales we could recapture for 152,000 sq. Ft. When Wal-Mart and Home Depot were constructed in the late 2000s, this helped increase the amount of shopping dollars that was being brought into Clarington. In 2008, the new Wal-Mart was expected to make 58.2 million dollars of total sales and the Home Depot was estimated to have sales of 19.4 million dollars (Clarington, 2005). Big-box stores help benefit retail sales in Clarington. Building new retail developments will prevent residents from buying merchandise elsewhere. The Commercial
  • 53. 53 Policy Review states that an increase in square footage leads to more sales per square foot, thus increasing the amount of spending dollars back into Clarington’s economy. At the lower end of the average sales performance levels calculated which are considered reasonable for the Clarington market, some 633,800 to 703,000 square feet of additional retail space would be warranted in Clarington by 2007 (at sales levels of $325 and $290 respectively). By 2010, at the same sales performance levels, the additional space required would be in the 790,000 to 876,000 square foot range. By 2021, the additional space would double from that warranted in 2010 (Clarington, 2005). Once big-box stores are built; then they will help increase the amount of retail sales being put into the economy. There is an opportunity to recapture a portion of these expenditures with new retail facilities in Clarington. Figure 6- Sales Data for new retail developments in Clarington. Source : Clarington (2005) Commercial Policy Review 2003 Dollars 2007 2008 2013 2016 Total Clarington - Proposed/PotentialDesignated Non-Department Store DSTM Space (Net) 407,100 407,100 407,100 407,100 TOTAL SALES - Proposed/Designated Non-Department Store DSTM Space ($ Millions) $108.8 $112.9 $123.0 $133.0 Average Sales Per Square Feet - Proposed $265 $275 $300 $325 Less: TOTAL Wholesale Trade (if WMC) $0.0 $0.0 $0.0 $0.0 Total Estimated Inflow Sales- $35.8 $37.1 $40.2 $43.5 Average Inflow 33% 33% 33% 33% A. TOTAL REQUIRED FROM CLARINGTON RESIDENTS $73.0 $75.8 $82.8 $89.5 B. TOTAL NON-DEPARTMENT STORE RESIDUAL POTENTIAL AVAILABLE $58.8 $58.7 $84.3 $100.8 TOTAL SALES TRANSFERS REQUIRED (A. LESS B.) $14.2 $17.1 none none NET ADDITIONAL RESIDUAL POTENTIAL FOR EXISTING/OTHER FUTURE PROPOSED SPACE (4 none none $1.5 $11.3 EXISTING CLARINGTON NON-DEPARTMENT STORE DSTM SPACE: Sales from Clarington Residents ($ Millions) (including add'l residual) $71.4 $57.2 $54.3 $72.9 $82.7 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $1.9 $2.0 $2.3 $2.2 Net Sales from Clarington Residents ($Millions) $71.4 $55.3 $52.3 $70.6 $80.5 Plus: Estimated Inflow 32.3% (2 $34.1 $26.4 $25.0 $33.7 $38.4 TOTAL SALES $105.5 $81.7 $77.3 $104.3 $118.9 Total Sq Ft GLA 460,900 460,900 460,900 460,900 460,900 Existing Sales Per Square Feet GLA (3 $230 $175 $170 $225 $260
  • 54. 54 Change in Total Sales From Existing Level -22.5% -26.8% -1.1% 12.7% Planning and Design Planning policies were a challenge for retail development because developers have to conform to the municipal and provincial planning legislature and the places to grow plan (CDO, 12). They also have to conform to the Oak Ridges Moraine and Greenbelt plans because 81% of the land in Clarington is protected (CDO, 13). In addition, commercial planning policies state that retail development should integrate land use, urban design and transportation objectives as well as providing less restrictive commercial policies by creating a simplified hierarchy (HPD, 4). The policies should focus the development on the urban centre. Consistent with the current Official Plan policy, other new power centres, expansions or significant commercial areas should not be created over the planning period and should only be considered through a comprehensive planning process (CDO, 4). The planning policies establish criteria related to conformity of the development with urban design policies and securement of the necessary transportation infrastructure such as roads. Retail developers are required to conform to planning policies and by-laws for retail development. Developers had to meet zoning laws for the construction of big-box stores. Big- box stores have to go through zoning and height restrictions. There are two zones: street-related commercial and large formats zones. They have quite a few performance standards that include the location of entrance and loading (HPD, 5). Local plans deal with how the community develops and this translates into zoning bylaws and development charges (HPD, 8). The developers had to meet the allowed conditions for building setbacks and the amount of parking spaces needed. Retail developments had to have a strong street presence with smaller stores in