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Drivers of agglomeration effects in retailing: The shopping mall tenant's perspective

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Retail and service enterprises seek benefits and synergies from locating their stores within retail agglomerations, such as shopping streets and malls. The aim of this paper is to identify the main drivers of such synergetic or ‘agglomeration effects’ for tenants. A literature review reveals four sets of drivers that are related to the location, the tenant mix, the marketing, and the management of an agglomeration. Based on a survey of 217 managers representing stores that are located in five regional and four supra-regional shopping malls, we demonstrate that location-related drivers including geographical location, accessibility, and parking conditions have a the highest impact on agglomeration effects in terms of the economic success of tenants. The results were consistent amongst different types of tenants differentiated by store size, customer footfall, industry affiliation, and perceived role within the respective mall (as footfall taker or generator within the network).

Keywords: centre management; place marketing; retail agglomeration; shopping centre

Document Type: Research Article


Affiliations: 1: University of Surrey, England, United Kingdom 2: Vienna University of Economics and Business, Austria

Publication date: August 1, 2012

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