Assess the impact of out-of-town centre retailing areas on the regions in which they occur

Assess the impact of out-of-town centre retailing areas on the regions in which they occur.

(40 marks)

Out-of-town retailing is a key development in the retail sector which can have both positive and negative impacts. Although it alters other retail areas within the same region irrevocably, out-of-town retailing also has many positive impacts, especially in terms of allowing more people access to a wider range of services. All major impacts must be examined in order to assess whether out-of-town centre retailing is beneficial to local regions or detrimental.

Out-of-town centre retailing areas developed mainly in the 1990s on the periphery of large urban areas, often near major motorways. These centres followed on from the non-food retail parks which were built out-of-town during the 1980s due to spatial needs (for warehouses etc) and the desire for easy access. The change from town centre retailing to out-of-town centre retailing was driven by a number of factors. Increased mobility due to increases in ownership and use of the private car enabled people to reach out-of-town areas easily but also placed pressure on limited city centre parking. This need for affordable, spacious parking meant that out-of-town retail centres were the ideal solution: land was easily available and parking could therefore be much cheaper or even free (Meadowhall near Sheffield provides 12,000 free parking spaces, while Monks Cross outside York provides over 1,000 free parking spaces). The changing nature of shopping habits, heavily influenced by changes in employment, has meant that people have a limited amount of time in which to shop for leisure. Out-of-town retail areas provide a wide variety of shops in a relatively small area (Meadowhall, for example, provides 280 different shops within 1,500,000 sq ft), meaning that it is much more convenient for the average consumer to visit these areas rather than congested city centres. Changing expectations of shopping habits, which mean that shopping is now regarded as a family activity, have encouraged the growth of out-of-town retail as expansion can take place to incorporate entertainment venues and restaurants: it is said that at Bluewater Shopping Centre, near Dartford, you are never more than 100m away from a coffee bar. Changes within retailing have also been influential: competition between high street chains has meant that retailers have consistently sought out cheaper locations (often out-of-town) in order to increase their economies of scale. All these factors combined have led to the creation, and continuing expansion, of out-of-town centre retail centres.

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Out-of-town centre retail areas can bring many positive impacts to the local area; the most obvious section of these being the economic impacts. Out-of-town centre retailing provides a comprehensive shopping experience, which covers everything from clothes to electronic gadgets to haircuts. Even relatively small out-of-town centre retail areas provide a wide range of shops: Monks Cross, near York, not only has clothing shops such as New Look and Debenhams, but also a branch of Poundland and Thomas Cook. Large shopping centres offer an even wider range: Meadowhall contains outlets of Zara and HMV, as well as a Vue cinema and fast food outlets like Shere Khan and Nando’s. The cheap parking prices and strong transport links (Meadowhall is the only shopping centre in the UK to have a bus, rail and tram interchange; trains run to Manchester, trams run all through Sheffield and buses run throughout the city and to outlying areas) mean that it is often more economical for families to travel to out-of-town centre retail areas than to city centres. Furthermore, out-of-town retail areas often host events which would be impractical to hold in most city centres, such as student lock-ins. These are particularly common in larger out-of-town retail centres, such as the MetroCentre on the outskirts of Newcastle. These events are often tailored to draw groups into the shopping areas who may otherwise keep away (this is especially true of students), thus widening the customer profile of the centre. Interestingly, the growth of out-of-town centre retail centres can actually encourage redevelopment of city centres and can therefore stimulate economic growth, improving the overall retail experience in the region. This is particularly true of York, where the growth of Monks Cross and other out-of-town retail parks, such as Clifton Moor, has caused campaigns to be developed which aim to make the city centre a retail hub once again. These campaigns include opening shops for longer to compete with out-of-town retail areas, the creation of a pedestrian zone within the city centre to create a safer and more attractive environment, and the proposed £60 million redevelopment of Coppergate, a major shopping area within the city centre. All of this is designed to encourage shoppers to visit York, as well as out-of-town retail centres. It therefore appears that out-of-town retail centres have a significant positive economic impact upon the local region.

However, it is certainly true that out-of-town centre retail areas can have negative economic impacts on the region in which they occur. One of the most obvious impacts is the loss of trade from other retail centres, especially town or city centres. Although some retail districts may be robust enough to survive relatively unscathed, such as Newcastle city centre which is a thriving retail area despite the existence of the MetroCentre around five miles away, smaller and less established retail areas may suffer. This is certainly the case in York; by 2016 it is predicted that the city centre’s turnover will be reduced by nearly £40 million, primarily due to the impact of out-of-town centre retail areas such as Monks Cross and the Designer Outlet. This fall in profits has already occurred in York city centre: the amount of money spent by consumers in the city centre in 2004 was just over £406 million, yet by 2008 this had fallen to under £394 million. Even being a large and established retail area does not guarantee total economic immunity: Meadowhall has been blamed for shop closures in Sheffield and Rotherham, partly due to the extensive range of shops that it provides. Out-of-town centre retail areas also tend to limit the opportunities available to independent retailers as they support mainly chain stores. In Meadowhall the majority of retailers are chain stores, with only a very small area of the centre (known as The Lanes) available for use by independent retailers. This favouritism means that the profits from the centre are not absorbed back into the community; out-of-town retail centres do not appear, therefore, to actually benefit the local economy as much as may first be apparent.

The positive impacts of out-of-town retail centres are not limited to economic successes. Some out-of-town retail centres have a positive impact on the surrounding environment. This is particularly true of centres which are built on brownfield sites, such as the MetroCentre. This was built on a former industrial site which had no purpose and was seen by many as an eyesore. By redeveloping the area not only has the largest shopping centre in the European Union been created but the area has also been made more attractive. Many out-of-town retail areas, due to their single ownership, have coherent and very effective recycling and environmental policies. 97% of waste from retailers and customers is recycled at Meadowhall, with 90 to 95% of all water used being sourced from rainwater or Meadowhall’s own bore hole. It is also the first UK shopping centre to have its own recycling facility: The Resource Recovery Centre. Out-of-town centre retail areas appear, therefore, to have a surprisingly positive selection of environmental impacts.

Out-of-town centre retail areas can, on the other hand, have significant negative impacts upon the local environment. Congestion resulting from increased traffic flow to the area can not only cause severe transport delays but can subsequently cause increased levels of pollutants to be released. Extreme demand, as occurred on the 27th December 2010 at Meadowhall when 147,000 people visited the centre, often causes congestion. Although the redevelopment of brownfield sites can often act positively upon the area, it can also be argued that many of the effects are actually negative. Some people may regard any large-scale development as unattractive and the modern, often futuristic design of out-of-town shopping centres can often not fit in with the landscape and with the style of local buildings. However, it must be remembered that these effects will be limited as out-of-town centre retail areas are not usually located in or particularly near residential areas. High levels of consumers travelling to the out-of-town centre retail areas means that there is increased demand for fast, efficient transport links. Where these are already in place, such as in Sheffield, this presents very few negative effects. The building of roads and railway links can disrupt habitats and wildlife, as well as causing increased levels of pollutants to be released by vehicles during the building process itself. It appears, therefore, that the positive and negative environmental effects of out-of-town centre retail areas are pretty much balanced.

Out-of-town centre retail areas can have positive social impacts on the local region. Due to their well-developed transport links a wide variety of socio-economic groups can access the centre and benefit from it (this is particularly true of out-of-town centre retail areas on the edges of large cities or conurbations, such as Meadowhall). Furthermore, the influx of employment brought by these retail areas can help tackle unemployment: Meadowhall created thousands of jobs within the local community, as did Metrocentre and other, smaller centres such as Monks Cross. Although this is mainly an economic achievement it does link in to social impacts: out-of-town centre retail areas can, by increasing employment, increase peoples' standard of living and reduce crime rates and improve other associated social problems.

However, out-of-town centre retail areas can also have large negative social impacts on the local area. Certain groups may feel excluded from these shopping centres as they tend to cater mainly for a family demographic, meaning that there are few shops catering specifically for pensioners or other minority groups. However, as already stated many retail areas are attempting to combat this by introducing events designed to draw people in. Large centres often have a much wider range of shops, also helping to reduce this: Meadowhall, for example, has outlets of Marks and Spencer and Hobbs (traditional shops, likely to be frequented by older people) as well as shops which target a younger demographic, such as Republic and Hollister. It can also be claimed that out-of-town centre retail areas help reinforce minimum effort, sedentary lifestyles and make actually be contributing to the so-called “obesity epidemic”. This is because these large retail centres, like Meadowhall, are usually compact, meaning that a large variety of shops can be reached with minimum effort (Meadowhall itself provides over 280 shops within 1,500,000 sq ft); their out-of-town location, often near motorways, means that people are forced to travel by bus, car or train (or, in the case of Meadowhall, by tram) rather than by foot or bicycle. This is unlike traditional town centre retailing, where it is not uncommon to have to walk reasonably long distances between shops. Furthermore, in out-of-town centre retail areas there are often significant numbers of fast food outlets: Meadowhall has its own food court and thirty shops that sell food, including Krispy Kreme Doughnuts and Fancie, a cake shop. Although this may be merely a symptom of a new lifestyle, driven by demand, and not a cause, it can certainly be argued that out-of-town centre retail areas contribute to increased levels of obesity in the general population.

It is apparent that out-of-town centre retail areas can have huge effects on the local region, both positive and negative. The two seem to be reasonably balanced, however it appears to be sensible to conclude that out-of-town centre retail areas have a mostly positive impact upon the local area. This is because many of the negative effects, such as marginalisation of certain socio-economic groups and the loss of revenue in town and city centres, can be managed or can spur positive development. For example, marginalised socio-economic groups can be drawn into out-of-town centre retail areas using events designed to cater to their particular demographic, while the extra pressure placed upon city centres can actually act as a catalyst for regeneration and further economic growth.