Main street retail districts or shopping centers? comparing the preferences of low-income consumers

Juracy Parente,Ana Miotto,Marcelo Brandăo,Flávia Plutarco

doi:10.15728/bbrconf.2012.7

Abstract

This study investigated the attitudes of low-income consumers, comparing their preferences between high street retail districts and shopping centers. The interviews were conducted in three representative retail districts in low-income neighborhoods in the city of São Paulo. Although the consumers were more satisfied with shopping centers, they still indicated stronger patronage intention for street shopping districts. Ten attractiveness factors were assessed as influencing the responses regarding these two types of retail agglomerations. While shopping malls received better evaluation on environment, infrastructure, variety of stores and security, the street districts were judged to be better regarding access and value. With the increasing purchasing power, degree of discernment and mobility of low-income consumers in Brazil, we believe that street retail districts, without intense efforts for revitalization, will tend to enter a severe process of deterioration.

Highlights

This study investigated the attitudes of low-income consumers, comparing their preferences between high street retail districts and shopping centers
Hopping malls or main street retail districts? In Brazil, despite the rapid and steady expansion of shopping centers, with 417 units and sales of R$ 87 billion in 2010 according to the Brazilian Association of Shopping Centers (ABRASCE), traditional street retailer districts continue to account for the highest volume of sales and remain promising location alternatives, preferred by a large number of successful retail chains, such as Casas Bahia and Lojas Pernambucanas, as well as fast food chains like and Habib’s
Our aim was to answer the following questions: What are the preferences and buying behavior of low-income consumers at street shopping districts? What factors explain the satisfaction and buying intention of consumers in choosing between shopping malls and street retail districts? How is this perception of attractiveness configured in different consumer segments? What should proprietors of street shops do to face the growing competition from shopping centers?

Summary

Introduction

This study investigated the attitudes of low-income consumers, comparing their preferences between high street retail districts and shopping centers. Due to the cumulative attractiveness and synergy that various nearby stores create between each other, there is a tendency for retailers to agglomerate in certain geographic areas (Berman & Evans, 2007; Guy, 2007) These places can be called “retail agglomerations” (Teller 2010) and main street retail districts and shopping malls are the two main types that strive to attract consumers. With high investments in the latest equipment, shopping centers have been continually upgraded Because they are planned agglomerations, they can present a well-balanced and complete mix of stores, besides offering security and aggregating services, such as entertainment. With the laudable expansion of the middle class (“Class C”)

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Results