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(IN)convenient stores? What do policies pushing stores to town centres actually do?

Author

Listed:
  • Paul C. Cheshire

    (London School of Economics & Centre for Economic Performance)

  • Christian A. L. Hilber

    (London School of Economics & Centre for Economic Performance)

  • Piero Montebruno

    (Centre for Economic Performance)

  • Rosa Sanchis-Guarner

    (University of Barcelona & Barcelona Institute of Economics)

Abstract

England ́s Town Centre First Policy, introduced in 1996, restricted the opening of new retail and other ‘traditional town centre activities’ to ‘Town Centre’ (TC) locations. The aim was to halt the decay of high streets. We explore the impact of the policy on the supply and location of grocery shops and patterns of shopping by comparing English with Scottish TCs before and after the policy change in England. Using store level census data, we show first that supply trends for grocery stores in TCs were similar in both countries prior to the implementation of the policy. After the policy took effect, however, stores in TCs increased relatively more strongly in England, but with no change in grocery employment. Second, using survey data, we show that the policy changed the composition of shops in TCs in favour of convenience-type shops supplied by the “big four” grocery chains. However, although it increased the number of TC shops, the policy had no effect on the number of shoppers choosing TC locations.

Suggested Citation

  • Paul C. Cheshire & Christian A. L. Hilber & Piero Montebruno & Rosa Sanchis-Guarner, 2022. "(IN)convenient stores? What do policies pushing stores to town centres actually do?," Working Papers 2022/09, Institut d'Economia de Barcelona (IEB).
    • Handle: RePEc:ieb:wpaper:doc2022-09
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    JEL classification:

    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R33 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Nonagricultural and Nonresidential Real Estate Markets
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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