Saturday 19th December
-1.2.4 What is the cause and effect of change in retail provision across the UK?
What you need to know:
1. The cause and effect of change in retailing (shopping)
2. Changes in where shops are located, including decline in shopping areas in the CBD, and rise
of out of town retail parks
3. How is technology changing the way we shop?
4. What are the social economic and environmental impacts of increased online shopping?
What is the change?
- A rise in out of town shopping centres
- An increase in online shopping.
What has caused the change in retail?
- Economic factors
o Retailing in city centres was very expensive due to the expensive land rents, but land
on the outskirts could be bought for less. In addition, many Central Business District
(CBD) stores were old and in need of modernisation, this too would have been very
expensive.
- Cultural factors
o Many shoppers were once quite faithful to their local store. Today, many people like to compare the types of goods
and look for a competitive deal or one-off exclusive item. Large out-of-town shopping centres allow consumers to:
visit several shops under one roof
have protection from the wind and rain
park, more often than not, for free which is a bonus for the UK consumer who enjoys the flexibility a car brings
- Technological factors
o Improvements in road networks, including motorways, in and around our urban areas allow consumers to drive
quickly, and often with less congestion, to out-of-town shopping areas compared with CBDs.
- Costs of out-of-town shopping
o Due to the success of out-of-town shopping, there has been decentralisation of retailing, whereby major retailers
have moved their premises from central locations in the CBD to the edge of the city. This causes the doughnut
(north America) or polo effect (UK) where there is an economic, social and retailing hole in the middle of the city.
- 24-hour shopping
- Nine to five is still a popular way to shop on the high street. However people now expect to be able to shop 24/7,
either online from the comfort of their own home or by visiting a large store which is open 24-hours a day.
-
IMPORTANT FIGURES ?!
Almost 15,000 shops in town centers in the UK closed between 2000 and 2009, with a further 10,000
losses in the past couple of years. Many household names such as Woolworths and Comet have
closed completely, and HMV had had to be bought out.
Costs and Benefits of out of town shopping
, Benefits
Shoppers are often able to park for free and do not have to travel into busy congested city centre
locations. In addition all stores are under one roof - often covered from the weather. There may also
be crèches and play areas for children which can make the shopping experience more enjoyable.
Retailers benefit from these locations because they have larger contemporary shop units which
allow a greater range of goods to be on show for sale. There is also good access for delivery vehicles
Environmental impacts of out of town shopping:
In addition, many large retail parks have also increased traffic and congestion on the roads. This
increases pollution from exhaust emissions which contributes to the greenhouse effect. Some retail
parks on the edge of town have been developed on greenfield sites. This is damaging to the
environment and reduces the available open green spaces between one urban area and another.
other costs
- Hard for small businesses?
- Loss of high street
- High street becomes neglected
Costs and benefits of internet shopping
The biggest rise in 24-hour shopping is the rise of the internet. This makes it possible for people to
engage in retailing without even having to set foot in a retail park, shop or supermarket. Every item,
from clothing to groceries, household goods such as televisions to garden sheds can be ordered
online.
The number of adults buying online has risen from 25 per cent in 2003 to around 50 per cent in
2008 to 75 per cent in 2016. Around 25 per cent of purchases are made using a mobile phone.
Benefits of internet shopping
Convenience - shop from any computer or mobile phone with an internet connection any
time, while avoiding the need to travel, pay for parking and queueing.
Greater variety - more shops online than any high street or retail park.
Cheaper goods - increased competition between retailers, for some on a global scale, brings
down prices.
Accessibility - those with a disability that limits their mobility can choose to have goods
delivered.
Comparability - using the internet makes it easy to research products or services very
thoroughly, comparing prices and product details in order to get the best deal.
Costs of internet shopping
Security concerns surrounding payment by credit card over the internet.
Not being able to physically inspect the goods before purchase.
Goods getting damaged during transport.
Goods not arriving in time or at all.
-1.2.4 What is the cause and effect of change in retail provision across the UK?
What you need to know:
1. The cause and effect of change in retailing (shopping)
2. Changes in where shops are located, including decline in shopping areas in the CBD, and rise
of out of town retail parks
3. How is technology changing the way we shop?
4. What are the social economic and environmental impacts of increased online shopping?
What is the change?
- A rise in out of town shopping centres
- An increase in online shopping.
What has caused the change in retail?
- Economic factors
o Retailing in city centres was very expensive due to the expensive land rents, but land
on the outskirts could be bought for less. In addition, many Central Business District
(CBD) stores were old and in need of modernisation, this too would have been very
expensive.
- Cultural factors
o Many shoppers were once quite faithful to their local store. Today, many people like to compare the types of goods
and look for a competitive deal or one-off exclusive item. Large out-of-town shopping centres allow consumers to:
visit several shops under one roof
have protection from the wind and rain
park, more often than not, for free which is a bonus for the UK consumer who enjoys the flexibility a car brings
- Technological factors
o Improvements in road networks, including motorways, in and around our urban areas allow consumers to drive
quickly, and often with less congestion, to out-of-town shopping areas compared with CBDs.
- Costs of out-of-town shopping
o Due to the success of out-of-town shopping, there has been decentralisation of retailing, whereby major retailers
have moved their premises from central locations in the CBD to the edge of the city. This causes the doughnut
(north America) or polo effect (UK) where there is an economic, social and retailing hole in the middle of the city.
- 24-hour shopping
- Nine to five is still a popular way to shop on the high street. However people now expect to be able to shop 24/7,
either online from the comfort of their own home or by visiting a large store which is open 24-hours a day.
-
IMPORTANT FIGURES ?!
Almost 15,000 shops in town centers in the UK closed between 2000 and 2009, with a further 10,000
losses in the past couple of years. Many household names such as Woolworths and Comet have
closed completely, and HMV had had to be bought out.
Costs and Benefits of out of town shopping
, Benefits
Shoppers are often able to park for free and do not have to travel into busy congested city centre
locations. In addition all stores are under one roof - often covered from the weather. There may also
be crèches and play areas for children which can make the shopping experience more enjoyable.
Retailers benefit from these locations because they have larger contemporary shop units which
allow a greater range of goods to be on show for sale. There is also good access for delivery vehicles
Environmental impacts of out of town shopping:
In addition, many large retail parks have also increased traffic and congestion on the roads. This
increases pollution from exhaust emissions which contributes to the greenhouse effect. Some retail
parks on the edge of town have been developed on greenfield sites. This is damaging to the
environment and reduces the available open green spaces between one urban area and another.
other costs
- Hard for small businesses?
- Loss of high street
- High street becomes neglected
Costs and benefits of internet shopping
The biggest rise in 24-hour shopping is the rise of the internet. This makes it possible for people to
engage in retailing without even having to set foot in a retail park, shop or supermarket. Every item,
from clothing to groceries, household goods such as televisions to garden sheds can be ordered
online.
The number of adults buying online has risen from 25 per cent in 2003 to around 50 per cent in
2008 to 75 per cent in 2016. Around 25 per cent of purchases are made using a mobile phone.
Benefits of internet shopping
Convenience - shop from any computer or mobile phone with an internet connection any
time, while avoiding the need to travel, pay for parking and queueing.
Greater variety - more shops online than any high street or retail park.
Cheaper goods - increased competition between retailers, for some on a global scale, brings
down prices.
Accessibility - those with a disability that limits their mobility can choose to have goods
delivered.
Comparability - using the internet makes it easy to research products or services very
thoroughly, comparing prices and product details in order to get the best deal.
Costs of internet shopping
Security concerns surrounding payment by credit card over the internet.
Not being able to physically inspect the goods before purchase.
Goods getting damaged during transport.
Goods not arriving in time or at all.
