Location and agglomeration factors predicting retailers’ preference for Indian malls

Abstract

Retail research has emphasized the importance of location in attracting mall traffic. This study focused on Indian mall retailers’ experiences on agglomeration and location strategies employed by malls and their impact on retailers’ decision to take space in the mall. The purpose of the study was to identify mall factors that play a critical role in making the mall an attractive site for renting space by retailers. Retailers seek to set up stores in areas that promise traffic and sales. Thus, it becomes important to understand the retailers’ perspective in deciding to rent space in a mall. Qualitative study was conducted to understand the retailers’ perceptions. Forty in-depth retailer interviews across Indian malls were conducted to understand retailer views on mall location factors. The findings add to the existing literature on retail location and posit that mall agglomeration and locational issues were categorized under factors like the presence of branded stores, catchment area, transport networks, and accessibility. Infrastructural, economic, and technological developments varied across malls located in different parts of the country. Retail location theories need to incorporate the infrastructure issues and attractiveness of the catchment area in explaining mall location strategies in India. Differences in the availability of facilities, services, and retail formats varied across small and big cities and influenced mall traffic.