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Market and Location Selection when Opening Shopping Malls in the City of Osijek as an Example

Author

Listed:
  • Sandra Mrvica Maðarac

    (Polytechnic Lavoslav Ruzicka in Vukovar)

  • Slobodan Stojanovic

    (Polytechnic Lavoslav Ruzicka in Vukovar)

Abstract

There is an increase in the number of shopping malls in Republic of Croatia in the recent years and that increase has a growth tendency. In their business planning, big trade chains have shown a great interest for investments on Croatian market. Main reasons behind that decision are geographic, demographic and legal advantages that Croatian market has to offer. Foreign companies have an access to cheap sources of financing, lower purchase prices, considerate negotiating advantage over suppliers and modern and fully formed technology for business activities, which enables them to enter foreign markets. With many hypermarkets entering Croatian market, and future arrival of the new ones, the whole perception of the Croatian trade has changed, so did the purchasing practice of the consumers. Shopping malls influence the balance in the city and suburbs, transport infrastructure and environment. Consumers welcome shopping malls competition due to its lower prices and better retail range. Shopping malls usually open either in the suburbs or in the city centers. Therefore, the number, types and forms of shopping malls influence the city structure. With already existing shopping malls in Osijek building of new ones is planned. Some new shopping malls are already under the construction. A question arises - for how long can the market persist this inrush and will some shopping malls be forced to close their shops in the near future?

Suggested Citation

  • Sandra Mrvica Maðarac & Slobodan Stojanovic, 2010. "Market and Location Selection when Opening Shopping Malls in the City of Osijek as an Example," Business Logistics in Modern Management, Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia, vol. 10, pages 199-212.
  • Handle: RePEc:osi:bulimm:v:10:y:2010:p:199-212
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