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Retail Externalities and Distance in Shopping Malls

Author

Listed:
  • Niels Kuiper
  • Mark Van Duijn
  • Arno Van der Vlist

Abstract

Shopping malls have revolutionized the retail landscape by their ability to efficiently internalize retail externalities. Based on anecdotal evidence and studies on consumer behavior, we expect that the location of a tenant within a mall can be an important determinant for the extent to which this tenant benefits from the presence of retail externalities in the mall. In this paper we examine this empirically. We make use of a unique dataset that contains 1,170 shopping mall tenants and their monthly sales numbers. These tenants were present in 9 Turkish shopping malls over a 4-year period. We specifically focus on the retail externalities generated by the presence of anchor tenants and the presence of competitors. Preliminary results suggest that anchor presence is an important determinant of non-anchor sales. The size of this externality seems to be dependent on the type of products the non-anchor tenant sells. We also find that the positive externality generated by anchors quickly decreases when distance to the anchor store increases. This seems to confirm our hypotheses that retail externalities have a spatial pattern within malls. Our results for the externalities generated by competitors show large heterogeneity dependent on the product category of the tenant for both the sign and size of the externality and its spatial pattern.

Suggested Citation

  • Niels Kuiper & Mark Van Duijn & Arno Van der Vlist, 2021. "Retail Externalities and Distance in Shopping Malls," ERES eres2021_205, European Real Estate Society (ERES).
    • Handle: RePEc:arz:wpaper:eres2021_205
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    File URL: https://eres.architexturez.net/doc/oai-eres-id-eres2021-205
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    More about this item

    Keywords

    Retail Externalities; Sales; Shopping malls; Spatial Variation;
    All these keywords.

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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