The economic effects of regional shopping centres

Abstract

Regional Shopping Centres (RSCs) have long been perceived as having negative effects on the shopping hierarchy and unpopular with Government, a view not necessarily based on hard evidence. This paper examines the positive and negative effects of a number of such centres based on a series of research studies undertaken for developer Capital Shopping Centres. The employment, labour market and expenditure benefits of these developments to local and regional economies are assessed. Wider impacts in terms of attracting new investment to an area, linkages with tourism and physical regeneration of derelict areas are also examined. In addition, the social impacts these centres have on local communities are examined. At the same time, potential adverse effects on surrounding town centre shopping facilities are investigated through analysis of a range of indicators of town centre vitality and viability, and discussions with town centre managers. The possible future direction for such centres is also considered in the light of Government planning policy, which could lead to the emergence of RSCs as focal points for sustainable new mixed use communities.